When RMDs Loom Large, QCDs Offer a Gratifying Tax Break

Send money directly to charity from your traditional IRA, and you won’t owe taxes on the amount you donate. It’s a win-win!

A pair of hands cradle a red heart knickknack.
(Image credit: Getty Images)

When you were younger and busy building your nest egg, it’s likely you didn’t give much thought to the impact required minimum distributions (RMDs) could have on your retirement someday.

The plan back then, when you chose to contribute your savings to a traditional IRA, was probably straightforward: to enjoy the account’s tax advantages each year for many years while accumulating as much money as possible.

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Scott Tucker, Investment Adviser Representative
President, Scott Tucker Solutions

Scott Tucker is president and founder of Scott Tucker Solutions, Inc.  He has been helping Chicago-area families with their finances since 2010. A U.S. Navy veteran, Scott served five years on active duty as a cryptologist and was selected for duty at the White House based on his service record. He holds life, health, property and casualty insurance licenses in Illinois, has passed the Series 65 securities exam in 2015 and is an Investment Adviser Representative.