If you are 70½ or older, one of the most powerful and tax-smart ways to support your community is a gift you may already be required to make — your annual Required Minimum Distribution from your IRA.
A Qualified Charitable Distribution allows you to transfer funds directly from your IRA to United Way of Pickens County. That transfer counts toward your Required Minimum Distribution for the year, and because it goes directly to charity, it is excluded from your taxable income entirely. That distinction matters more than it might seem.
When you take a regular IRA withdrawal and donate the proceeds later, that withdrawal still counts as taxable income. A Qualified Charitable Distribution bypasses that completely, which can make a meaningful difference in several areas:
Your tax bracket. Because Required Minimum Distributions count as ordinary income, a large withdrawal can push you into a higher bracket. A Qualified Charitable Distribution reduces that risk.
Your Medicare costs. Medicare Part B and D premiums are calculated using your modified adjusted gross income from the prior year. A smaller taxable distribution can help keep those costs from rising unexpectedly.
Your Social Security benefits. Even modest IRA withdrawals can cause a portion of your Social Security benefits to become taxable. A Qualified Charitable Distribution helps protect what you've earned.
The result is a gift that does two things at once — it puts your resources to work right here in Pickens County, and it does so in a way that protects your financial picture.
Before making a Qualified Charitable Distribution, we encourage you to speak with your accountant or financial advisor about your specific situation. When you're ready to move forward, we're here to help make it simple.
Ready to move forward with your IRA gift or have questions before you do? Contact Mark Eisengrein using the form below or at 864-826-8108. We'll make the process as simple as possible.