IRA Charitable Contributions

IRA Charitable Contributions

Donate Your Required Minimum Distribution

A Required Minimum Distribution or RMD is the minimum amount that individuals with
certain types of retirement accounts, such as Traditional IRAs or employer-sponsored
retirement plans like 401(k)s, are required to withdraw from their accounts each year
once they reach a specific age. This age has changed with recent law changes so
please be sure to check with your financial professional on your eligibility.

A Qualified Charitable Distribution (QCD) is a direct transfer of funds from an Individual
Retirement Account to a qualified charity. QCDs were introduced as part of the tax
legislation and allow IRA owners who are at least 70½ years old to make charitable
donations directly from their IRA without incurring tax penalties.

How Do I Donate My RMD?
To donate your Required Minimum Distribution (RMD) to a charity, follow these steps:
● Be eligible: You must be at least 70½ years old to donate your RMD to a charity.
● Identify the charity: Choose the charity you wish to donate to. Ensure that it is a
qualified 501(c)(3) organization to qualify for tax benefits.
● Inform your IRA custodian: Contact your IRA custodian or advisor and inform
them that you want to make a qualified charitable distribution (QCD) from your
● Specify the amount: Indicate the amount you want to donate as a QCD, up to a
maximum of $100,000 per year.
● Direct transfer: The custodian will transfer the specified amount directly to the
charity on your behalf. It's essential that the funds never pass through your
personal account to qualify for the tax advantages.
● Tax benefits: A qualified charitable distribution allows you to exclude the donated
amount from your taxable income, potentially lowering your overall tax liability.
Remember to consult with a financial advisor or tax professional for personalized advice
regarding charitable donations and tax implications based on your specific financial