If you are 70½ or older, you may already know your IRA comes with something called a Required Minimum Distribution. What you might not know is how flexible and impactful those funds can be for your financial planning and your charitable giving.
This guide breaks down ten things most people never learn about RMDs, so you can feel confident making decisions that support your goals and the causes you care about.
Once you turn 73, the IRS requires you to withdraw a minimum amount from your traditional IRA each year. Miss it and you may face significant penalties. So it pays to stay ahead of the deadline.
Your yearly withdrawal is based on IRS life expectancy tables. That means the amount you must take out gradually grows over time.
Every dollar you withdraw is included in your taxable income for the year. The exception is when you use a qualified charitable strategy like a QCD. More on that below.
You are always allowed to take out more than your RMD. Just remember that the entire amount is taxable.
A QCD allows you to transfer funds directly from your IRA to a qualified nonprofit. The best part is that the amount given does not count as taxable income. This is one of the most powerful tax strategies available to generous donors.
If you make a QCD, the amount you give can count toward your required distribution for the year. It can satisfy part of your RMD or all of it.
Even though RMDs do not begin until age 73, you can start giving through a QCD as soon as you reach 70½. Many donors use these early years to reduce future taxable income.
Unlike most charitable deductions, QCDs provide a tax advantage even if you take the standard deduction. This makes them especially useful for retirees who no longer itemize.
To keep your gift tax free, the funds need to transfer straight from your IRA custodian to the nonprofit. If the money hits your bank account first, it becomes taxable income.
Many donors use their RMD or QCD to make a meaningful gift that strengthens the causes they love. It is a simple way to create a legacy of support for future generations.
If you are planning your RMD this year, consider using it in a way that benefits both you and the mission(s) you care about most. A charitable gift from your IRA can reduce your taxable income, simplify your giving, and make a real impact in your community.
Head of Partnerships
Craig@lifelegacy.io
Qualified Charitable Distributions (QCDs) are becoming one of the fastest-growing forms of giving in the United States. As millions of Americans age into eligibility and retirement assets remain at historically high levels, 2026 is shaping up to be a breakout year for nonprofits that understand how to build a modern QCD strategy.
Planned giving isn’t only about money, it’s about meaning. When you frame the conversation around values, legacy, and impact, donors feel invited rather than pressured.
A planned giving conversation isn’t something you rush into. It’s a moment of trust, timing, and emotional readiness, and when you recognize the signals, the conversation becomes far more natural and meaningful for both you and the donor. Below is an exploration of the cues that tell you a donor may be ready to talk about legacy gifts, along with some practical guidance to help you approach the moment with confidence and care.
Be the first to get notified when we go live with our will product.
