Golden Years Stories

Making a QCD with Your RMD through your IRA

There are many sources of income for those who are retired. You likely have Social Security income, and perhaps you also have a teacher’s pension, a 401(k), investment or farm earnings, certificates of deposit, or a part-time job. You may also have an Individual Retirement Account (IRA). An IRA is a great way to save and provide financial security for your retirement.

When you reach 70 1⁄2 years old, you must take a Required Minimum Distribution (RMD) from your tax-deferred IRA, regardless of whether you need that income because the IRS wants to collect tax revenue from the money you have been saving over the years.

So, what can you do if you don’t need that source of income and want to avoid paying taxes on your RMD? Give it to charity! You can make a Qualified Charitable Distribution (QCD) from your IRA directly to a charity in the amount of your RMD or up to $100,000 per year. By doing so, you will avoid paying income tax on the distribution because the money never enters
your possession.

Even if you need a portion of your RMD for living expenses, you may also give a portion directly to charity. Say you have a required distribution of $6,000 per year, but you only need half for living expenses. You can direct $3,000 from your RMD to go directly to a charity tax free, receive $3,000 for your personal use and only be taxed on that $3,000.

Consider making a QCD with your RMD through your IRA to the campus foundation where you or your loved one lives to support our mission to create dynamic living communities that embrace the creativity, contributions and challenges of aging for all, grounded in service excellence and compassionate care.

To learn more, call the Foundation Office, visit, or contact your trusted attorney or financial advisor.

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