IRA Required Minimum Distribution

Turn your RMD into a QCD … another way to support the Wildlife Center of Virginia!

It’s not alchemy … or alphabet soup.  It’s a pretty straightforward process … that might make sense for you. 

Under current tax law, individuals who have a traditional IRA and have reached the age of 70 ½ must take a distribution from that account every year.  The amount of that Required Minimum Distribution – or RMD – is set by the Internal Revenue Service, based on life expectancy.   

These distributions are taxed as regular income.

Some individuals may find that this RMD places them in a higher tax bracket or affects other benefit programs [Social Security, Medicare].   Others may be looking for alternate revenue sources to continue their lifelong habit of charitable giving. 

In these cases, the IRA holder may decide to send that RMD directly to a charitable organization. – through a Qualified Charitable Distribution  -- the QCD.  In this case, the individual instructs the custodian of her/his IRA – usually a bank or mutual fund – to make the distribution directly to a qualified charity – like the Wildlife Center of Virginia!

Through this process:

  • The “requirement” for the annual distribution from the IRA is met;
  • The funds sent to the Wildlife Center are not counted as taxable income;
  • This distribution does not count as a charitable donation that is tax deductible.  However, under the new tax law, it’s estimated that only about 10 percent of taxpayers will itemize their deductions; the vast majority will use the standard deduction, and that standard deduction is unaffected by the QCD.
  • The Wildlife Center receives funds to continue its life-saving and life-changing work. 
     

To decide if a QCD to the Wildlife Center of Virginia makes sense for you, please consult your tax professional and/or IRA custodian.

IRA FAQs - Distributions (Withdrawals)

All About Qualified Charitable Distributions

Jorgen Vik: Qualified charitable distribution may be good alternative, Daily Progress

For additional information about including the Wildlife Center in your estate plans, please contact Ed Clark at eclark@wildlifecenter.org or Randy Huwa at rhuwa@wildlifecenter.org. All inquiries will be treated in strict confidence.