An RMD, or Required Minimum Distribution, is the minimum amount that many retirement account owners must withdraw annually from certain tax-deferred retirement accounts, such as traditional IRAs, once they reach the age required by IRS rules.
For some donors, an RMD creates additional taxable income. A Qualified Charitable Distribution (QCD) allows eligible individuals to direct funds from their IRA to a qualified charity, such as Lutheran Family Services, which may help satisfy all or part of their RMD requirement while supporting a cause they care about.
Using Your RMD to Support Lutheran Family Services
If you are eligible to make a Qualified Charitable Distribution:
- Contact your IRA custodian or financial advisor.
- Request that funds be transferred directly from your IRA to Lutheran Family Services.
- The transfer must be made directly to the organization to qualify as a QCD.
- Lutheran Family Services receives the gift and uses it to support programs that strengthen individuals, families, and communities.
- You receive acknowledgement of your charitable gift for your records.
How It Works
Consider This Example
John, age 75, is required to take a $12,000 RMD from his traditional IRA this year. Rather than receiving the entire distribution personally, John directs $5,000 from his IRA to Lutheran Family Services as a Qualified Charitable Distribution.
As a result:
- $5,000 goes directly to support Lutheran Family Services.
- That $5,000 counts toward satisfying a portion of John’s RMD obligation.
- John may reduce the amount of taxable income he would otherwise recognize from his retirement account distribution, subject to applicable tax laws and his individual circumstances.
Make a Lasting Impact
An IRA charitable gift can be a simple and meaningful way to support Lutheran Family Services while fulfilling your retirement distribution requirements. We encourage you to consult your financial or tax advisor to determine whether a Qualified Charitable Distribution is right for you.
This information is provided for educational purposes only and should not be considered legal, tax, or financial advice.
Development Team
Questions about making a Qualified Charitable Distribution to Lutheran Family Services? Contact the Development Team.
Phone: 531-444-3556
Email: [email protected]
Ready to Give From Your RMD?
Start by speaking with your IRA custodian or financial advisor, then reach out to our team so we can help ensure your gift is received and acknowledged properly.