WHY GIVE FROM AN IRA?
If you own a traditional IRA or are the beneficiary of a Roth IRA whose owner has died, the IRS mandates that you withdraw a certain amount each year beginning at age 72 (73 if you turned 72 after Dec. 31, 2022).
Depending on your situation, this Required Minimum Distribution (RMD) may increase your tax liability.
If you don't need some or all of the RMD as income and want to avoid increased tax liability, you may want to consider a Qualified Charitable Distribution (QCD). A QCD is a gift to charity directly from your IRA, which means the withdrawal doesn't increase your taxable income.
HOW TO MAKE A GIFT FROM AN IRA
You can use this secure tool from FreeWill to instruct your IRA administrator to make a QCD. If you prefer to make the gift by contacting your IRA administrator directly, click here to access the information you need to provide them.
WHAT IF MY HOLDINGS ARE IN A DIFFERENT KIND OF RETIREMENT SAVINGS ACCOUNT SUCH AS A 401(k)?
You cannot make a QCD from employer retirement plan types such as 401(k), 403(b) and 457(b). However, those plans do have RMDs. So if you have one of these accounts and you would like to be able to make a QCD, consult your investment advisor about moving your assets into an IRA using a rollover.
ADDITIONAL CONSIDERATIONS FOR IRA OWNERS
If you want to continue to generate income with your RMD, you could consider using a QCD to fund a Charitable Gift Annuity (CGA).
If you don't want to change the structure of your portfolio during your lifetime but do want your remaining retirement savings to go to charity upon your death, click here for information on how you can name us as the beneficiary. Many IRA administrators allow you to update your beneficiary online.