Maximize Your Giving: Contribute a QCD Through Your IRA

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What is a Qualified Charitable Distribution (QCD)?

A Qualified Charitable Distribution (QCD) is a direct transfer of funds from your IRA to a qualifying charity. If you’re 70½ or older, you can make a QCD of up to $108,000 annually, which can count toward your required minimum distribution (RMD) without being considered taxable income.

Understanding Required Minimum Distributions (RMDs)

RMDs are the minimum amounts you must withdraw annually from your tax-deferred retirement accounts after reaching a specific age:

• Age 72: If born in 1950 or earlier.
• Age 73: If born between 1951 and 1959.
• Age 75: If born in 1960 or later (per SECURE Act 2.0).

Benefits of QCDs

Tax Efficiency:

• QCDs reduce your adjusted gross income (AGI), potentially lowering your tax bracket.
• They can help decrease your Medicare premiums and Social Security taxes by reducing your AGI.

Reduction of Future RMDs:

• Making QCDs before your RMD age reduces your IRA balance, potentially lowering future RMDs.
• Excess QCDs beyond your RMD requirement can further reduce future RMDs.

No Double Taxation:

• The amount donated via a QCD is not included in your taxable income, though it does not qualify for an additional income tax charitable deduction.

How to Make a QCD

Direct Contribution:

• The QCD must be transferred directly from your IRA to the charity to maintain tax benefits.
• Typically done via a “third-party check” issued by your IRA provider directly to the charity or qualifying non-profit of your choice.

Timing:

• QCDs must be completed by December 31 to count toward that year’s RMD.

Special Considerations for 2025

• Annual QCD Limit: $108,000 per individual aged 70 ½ or older.
• One-Time Gift Options: Up to $54,000 for a Charitable Remainder Trust (CRAT or CRUT) or Charitable Gift Annuity.

Conclusion

Making a QCD to Three Pillars Senior Living Communities is a tax-efficient way to meet your RMD requirements while supporting a meaningful cause. By including the Wisconsin Masonic Home, Inc. (dba Three Pillars Senior Living Communities) in your planned giving, you not only take advantage of the tax benefits of charitable giving but also perpetuate your philanthropic interests, allowing us to make a meaningful difference in the lives of the residents we are privileged to serve.

If you are interested in making a QCD to Three Pillars Senior Living Communities:

1. Contact your IRA administrator to initiate the QCD, providing our organization’s name and mailing address (Wisconsin Masonic Home, Inc, 410 N. Main St, Dousman, WI 53118)
2. Inform us of the pending gift, including the amount and issuing company, so we can properly acknowledge your contribution.

Every gift makes a difference.

Disclaimer: Three Pillars Senior Living Communities does not provide tax, legal, or financial advice. Please consult your tax advisor or financial planner to determine how a Qualified Charitable Distribution fits into your individual financial and tax planning strategy.