Directing your Individual Retirement Account (IRA) funds to a charity is a great idea!  There are rules to follow which you should review with your advisory, but here is a quick overview.

Using your IRA for Charitable Giving

When you reach age 72, you must start taking Required Minimum Distribution (RMD) from your IRA.  If you do not need or want the income from your RMD, you can direct up to $100,000 to a Qualified Charitable Distribution (QCD).  The charity must be a 501(c)(3) charity, but it cannot be a Donor Advised Fund, Private Foundation or a Supporting Foundation.  In addition, you can not receive any benefits in return such as a membership, promotional product etc.  Hiawatha Valley Mental Health Center is a QCD.

The amount you direct to charity will reduce the size of your RMD and reduce your taxable income.

How do you make a Qualified Charitable Distribution?

Discuss your intention with your lawyer or accountant.