For certain retirement plans—such as traditional IRAs and 401(k)s—you are generally required to begin taking required minimum distributions (RMDs) and paying taxes on them once you reach age 73.
One way to reduce the tax impact of these distributions is by making a qualified charitable donation (QCD). This allows you to contribute directly to a charitable organization from your IRA without having to pay taxes on the donated amount.
QCDs can only be made from traditional IRAs, not 401(k) accounts. If you’d like to donate funds from a 401(k), you would need to either pay taxes on the distribution first or roll the funds into an IRA before making the QCD.
To take advantage of this opportunity, simply contact your IRA administrator and request a direct transfer to the Washington Policy Center. Please ensure that your donation is made payable to the Washington Policy Center and that our Tax ID number, 91-1752769, is included to ensure proper processing.
Have questions about making a donation through a QCD or using your 401(k)? Feel free to email Shelbi Hogenson at shogenson@washingtonpolicy.org or speak with your financial advisor.
