Maximizing Your IRA Before Year-End 

Making a year-end charitable distribution is a powerful way to achieve your philanthropic goals. This impactful gift can support the causes you care about while offering significant tax benefits — positioning you well for the coming years. 

Individuals age 73 or older must take annual required minimum distributions (RMDs) from their individual retirement accounts. If you do not withdraw your RMD, it could result in an IRS penalty. The good news? You can avoid a penalty while also contributing to the organizations you value most. 

Instead of taking your RMD as income — and paying taxes on it — you can direct it to a charity. This way, you satisfy your IRS obligation without increasing your taxable income. Gifting all, or a portion of your RMD directly to a qualified charity is considered a qualified charitable distribution (QCD). The current maximum amount is $108,000, and it can fulfill all or part of your annual RMD requirement. 

A qualified nonprofit such as WashU pays no income tax, so 100% of your IRA gift goes directly to the university, creating a greater impact. 

One WashU donor has been supporting the university for over 35 years. Over the past decade, she has made multiple year-end gifts from her IRA to support an endowed research fund at Washington University School of Medicine in St. Louis. Her years of generous support have yielded positive tax implications because many of those gifts qualified as QCDs, fulfilling part or all of her annual RMD. 

Now is the perfect time to take advantage of this year-end giving opportunity. Talk with your financial adviser, review your IRA account, and make any necessary updates. As always, please reach out to the Office of Planned Giving to let us know about your plans. We would love to thank you and ensure your gift is honored according to your intentions. 

We’re here to help, and we look forward to working with you to turn your philanthropic goals into lasting, meaningful investments in future generations. 

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