Required Minimum Distributions (RMD) and Qualified Charitable Distributions (QCD)

Are you over or nearing the age of 73? Do you have a retirement account like an IRA?

Then you may have heard about the annual Required Minimum Distribution (RMD) from your retirement account. According to Charles Schwab, “An RMD is the annual Required Minimum Distribution that you must start taking out of your retirement account after you reach age 73. The amount is determined by the fair market value of your IRAs at the end of the previous year, factored by your age and life expectancy.” A Qualified Charitable Distribution (QCD) is a direct transfer of funds from your retirement account to a charity of your choice, like LCW. This contribution can count toward your RMD, and a QCD excludes the amount donated from taxable income, unlike regular withdrawals from an IRA!

Choosing LCW for your Qualified Charitable Distribution can help you minimize the tax burden of your RMD while helping children—you can even use these funds to pay your sponsorship! Call 770-358-2771 or email to get the process started or to ask any questions you may have. Typically, your retirement account advisor will provide a form that we will complete, and your QCD to be sent directly to LCW. Then, we can distribute it according to your wishes. Thank you for considering LCW for your Qualified Charitable Distribution!