Does Your Client Have an RMD Dilemma? We Have Answers!
Our philanthropic advisors can help you and your clients identify the best way to deploy their charitable dollars.
For your clients with Required Minimum Distributions (RMDs) in excess of their current needs, Qualified Charitable Deductions (QCDs) are an effective tool to reduce taxable income and fulfill charitable interests. While QCDs are not a tax deduction, they count towards satisfying your client’s Required Minimum Distribution, thereby reducing what would otherwise be taxable income, regardless of whether your client itemizes.
While RMDs must begin by age 73½, individuals over age 70½ can also make QCDs (although if your client is still earning income and contributing to an IRA, post 70½ contributions cannot be used toward a QCD.) In 2026, up to $111,000 can be transferred directly from an individual’s IRA to a qualified charity.
While your client may be disappointed to find that current tax laws do not allow a QCD to be transferred to a Donor Advised Fund, The Community Foundation offers easy alternatives. A charitable fund that is directed for broad charitable purposes, an area of interest, or an organization can be easily established. Essentially, the fund is advised in advance. With our knowledge of local nonprofits, our philanthropic advisors can help you and your clients identify the best way to deploy their charitable dollars.
What can your client do with a QCD? The Community Foundation has answers!
Sharon Cappetta, CAP®
Director of Development
203-777-7071
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