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Creating a Legacy - Gifting your Retirement

You have spent your whole life working hard and saving for your retirement. Maybe you did such a good job saving that you have more in your IRA or other retirement accounts than you need. In that case, you can use all or part of your retirement assets for charitable giving.

You have spent your whole life working hard and saving for your retirement. Maybe you did such a good job saving that you have more in your IRA or other retirement accounts than you need. In that case, you can use all or part of your retirement assets for charitable giving.

If you are 70 ½ years old or older, you can transfer up to $100,000 yearly from your IRA to a qualified nonprofit organization. This is called a qualified charitable distribution or QCD. Traditional IRA distributions are taxable income, meaning you will owe taxes on the amount you withdraw from your account. The same rule, though, doesn’t apply to charitable donations. The IRS allows you to use required minimum distributions from your IRA as QCDs on a tax-free basis. Because you do not recognize the donation as income, you avoid paying income tax entirely. Best of all, your donation counts towards your minimum required distribution (RMD). These same rules apply if the IRA is inherited.

While you may not make a QCD to your Donor Advised Fund at Truman Heartland, you can make a QCD to a designated foundation fund. Such funds include a scholarship fund, annual charitable giving to pre-determined qualified nonprofits, or a field of interest fund.  Don’t hesitate to reach out to Cole Eason, Vice-President of Advancement, to learn more about using your retirement accounts to support your charitable giving.



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