Bethel Ruest

By Bethel Ruest, MBA
Senior Philanthropic Advisor

When we start to make plans for the year, the list of things to do quickly grows long. Calendars can fill up fast. If you are of retirement age, I have some good news for you, though. The schedules that help you stay organized and maximize your time can also help you maximize your treasures.

As you think ahead, consider planning for the required minimum distributions (RMDs) from your IRA. Tax law mandates that you take withdrawals from your retirement account whether you need the money or not beginning at age 73. Not taking an RMD at all results in a hefty penalty.

For those who don’t need the income from an RMD, a decision lies ahead of you: do you take out the money and pay the associated income tax, or do you take advantage of a different opportunity?

Turn Your RMD Into a QCD

If you’re a charitably minded person, you may decide to use the distributions to support your favorite causes through a unique opportunity: a qualified charitable distribution (QCD). This direct distribution from your IRA to a qualifying charity does not impact your adjusted gross income, which might come with significant tax savings. And you don’t have to wait to get started! If you’re age 70 ½ or older you can make a QCD from your IRA.

QCDs allow you to make the most of your RMD, but this strategy is technical. I recommend you consult with your financial advisor for guidance.

Take Your QCD One Step Further

Pairing a QCD strategy with a charitable fund at the Catholic Community Foundation of Minnesota (CCF) can help you achieve your financial and charitable goals. Whether you’re saving for continued giving when income is limited, building up to a larger one-time gift, or building a perpetual endowment that will support your favorite ministry forever, CCF has a charitable fund option to help maximize your gifts and build a legacy of generosity. To learn more about RMDs and charitable giving, give us a call today.


The information provided above by the Catholic Community Foundation of Minnesota (CCF) is general and educational in nature. CCF and its staff do not provide individualized legal or tax advice. We recommend you consult with your attorney or tax professional regarding your unique personal situation.

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