If you’re 70½ or older, you can donate directly from your IRA to charity, without the amount counting as income on your tax return. This is called a Qualified Charitable Distribution (QCD). The best part? You won’t pay tax on the distribution, so the charity receives the full amount.

This is especially beneficial for those required to take Required Minimum Distributions (RMDs). IRA owners 72 or older must withdraw a set percentage each year based on their age. By donating some (or all) of that amount directly to charity, you can avoid taxes, and it counts toward the RMD requirement—up to $100,000 annually.

A QCD may also help lower your Medicare premiums. Since premiums are based on modified adjusted gross income, reducing income through a QCD can keep you from moving into a higher premium bracket.

Importantly, a QCD isn’t counted as income, so you don’t need to itemize deductions. However, if you do itemize, keep in mind that QCDs cannot also be claimed as an itemized charitable deduction.

Making a QCD donation is simple: Just ask your IRA trustee to issue a check payable to:

IPEI
PO Box 4268
Ithaca, NY 14852

If your family is grown and a life insurance policy is no longer needed for its original protection, it can be repurposed into a beautiful gift of education. You can name IPEI as a beneficiary to help fund a future you believe in.

By simply naming IPEI as a partial beneficiary of an IRA or 401(k), you can provide transformative support. It’s a gentle way to give that often carries significant tax relief for your loved ones, allowing more of your hard-earned resources to reach the causes you care about.