If you, like me, have an Individual Retirement Account (IRA), you know (or should know!) that you are required to make Required Minimum Distributions (RMD) each year from your IRA when you reach age 73. However, when I turned 73, I learned that the IRS allows for Qualified Charitable Deductions (QCD) directly from an IRA to an authorized charity beginning at age 70 ½, including the Los Angeles Regional Food Bank.
QCDs offer several tax benefits. First, unlike money you withdraw from your IRA account, a QCD from an IRA does not count as taxable income. Second, the QCD counts towards your annual RMD. And third, the QCD is excluded from the calculation of your Adjusted Gross Income (AGI): depending on your tax bracket, a lower AGI may help reduce your monthly Medicare premiums and taxes on your Social Security payments. You should, of course, check with your tax advisor regarding how using QCDs would personally benefit you.
I now use a QCD from my IRA to make my contributions to the LA Regional Food Bank and other non-profits. Based on my experience, I would strongly encourage you to consider a QCD to the Food Bank if you are 70 ½ years of age or older.
-Casey Green
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Donating to charity through an IRA is not only a meaningful way to support causes you care about, but it can also be a smart financial strategy. When you make IRA donations to charity—also known as Qualified Charitable Distributions (QCDs)—you can reduce your taxable income while fulfilling your Required Minimum Distributions (RMDs). By directing your IRA donation to a trusted nonprofit like the Los Angeles Regional Food Bank, you’re helping provide nutritious food to those in need across our community. If you’re exploring options for donating to charity in a tax-efficient way, IRA donations to charity may be the right path for you.
The Los Angeles Regional Food Bank thanks donors like Casey who make our work possible. As a nonprofit organization, we rely on the generosity of the community to complete our essential work.Â
To learn more, visit our Other Ways to Give webpage, or to make a lasting contribution to the Food Bank, consider learning more about Planned Giving and the Feeding LA Tomorrow Legacy Society.