IRAs, RMDs, QCDs, Oh, my!

That’s a lot of letters to decipher, but they are important to know if you:

  1. hold an Individual Retirement Account (IRA) or 401(k);
  2. are at the age of Required Minimum Distributions (RMD) and
  3. are taking advantage of the Qualified Charitable Deduction (QCD).

Individuals who have reached the required age of minimum distributions have the option of directing up to $100,000 annually to causes they care about. It’s a win-win with charity receiving 100% of the distribution and the individual avoiding income tax on the distribution. The key is to make sure the funds go directly to a qualified charity and never hit your personal accounts.

The Winona Community Foundation is an eligible 501(c)(3) charity. Individuals who wish to donate using a QCD can give to any number of funds within the Foundation with one BIG exception. The Internal Revenue Code (IRC) does NOT allow individuals to use a QCD to contribute to or establish a personal donor advised fund.

If you want to learn more about how to use your IRA or other retirement assets to fulfill your charitable goals, please give us a call at 507.454.6511 or email We are here to help.