Updated: Dec 13, 2022
This month’s Table Talk blog focuses specifically on IRAs and some of the charitable
options that are available.
In very general terms, an IRA is a retirement account that allows workers to invest
earnings now, receive potential tax-free growth over the years, and then provides a source
of income during retirement years. These types of accounts are truly beneficial in many
One of the ways an IRA can provide additional benefit is make charitable donations directly
from the account. This is called a Qualified Charitable Distribution (QCD). For those who
own an IRA and also make charitable gifts or wish to donate to charity, this can be a great
To give a QCD, a person needs to contact his/her financial planner or IRA account
representative and make a request for a donation to your favorite charity from your IRA. A
check is then sent directly to the charity. The money cannot go to the donor at any point in
This is a great option to consider, because the QCD counts toward the annual required
minimum distribution. The donor is able to make a donation and reduce their taxable
income at the same time.
An IRA account can also serve as a wonderful estate gift for charity. Since IRA distributions
are taxable, your heirs will inherit the money, but also the tax burden. Plus, the SECURE Act
requires an heir to take all of the inherited money within ten years. In many cases, people
achieve a greater goal by giving their IRA to charity and all other assets to loved ones.
As with all financial and estate planning decisions, you need to contact your personal
advisor or account representative before making a final decision.
You can also contact Paul Snamiska (firstname.lastname@example.org) to learn more about the charitable options with your IRA account.