A Smarter Way to Give This Holiday Season
As the holidays approach, many of us are thinking about the organizations and causes we want to support. With Giving Tuesday on December 1 and year-end giving ahead, it's also a good time to think about how you give.
Could Your IRA Be a Smarter Way to Give?
If you're 70½ or older, you may be eligible to make a Qualified Charitable Distribution (QCD) directly from your IRA to a qualified nonprofit.
For 2026, eligible IRA owners can make up to $111,000 in QCDs, which are generally excluded from taxable income.
Here's where it gets especially interesting for retirees taking Required Minimum Distributions (RMDs).
Once you reach age 73, you're generally required to withdraw a certain amount from your traditional IRA each year, and those withdrawals are typically taxable.
A QCD can count toward satisfying your RMD without adding the qualifying charitable distribution to your taxable income.
For example: If your annual RMD is $20,000 and you donate $5,000 directly from your IRA to an eligible charity through a QCD, that $5,000 can count toward your RMD. You would then need to withdraw only the remaining $15,000 to satisfy your requirement, assuming no other distributions.
That's $5,000 supporting a cause you care about rather than being included in your taxable income.
The goal isn't necessarily to give more. It's to make your giving part of your larger financial, tax, and retirement strategy.
Planning your year-end giving? Reach out to the IWS team before making your donations. Let's discuss whether a QCD could benefit both you and the organizations you care about.
