The Smart Way to Give with Your IRA
If you are looking for a highly tax-efficient way to support CLF this year, your IRA may hold the key. For supporters aged 70½ or older, a Qualified Charitable Distribution (QCD) allows you to give directly from your retirement account, turning a mandatory tax obligation into a meaningful gift.
Why Give via Your IRA?
A QCD is often called the "smartest way to give" because it bypasses your bank account entirely. Instead of taking a withdrawal, paying taxes on it, and then donating the remainder, the funds go directly from your IRA to CLF tax-free.
The Strategic Benefits for 2026
Under this year’s tax rules, giving through an IRA is more advantageous than ever:
- Satisfy Your RMD: If you are 73 or older, your gift counts toward your Required Minimum Distribution (RMD). You meet your legal obligation without increasing your taxable income.
- Lower Your AGI: Because the gift is excluded from your income, it lowers your Adjusted Gross Income (AGI). This can help you avoid higher Medicare premiums and reduce the taxation of your Social Security benefits.
- Bypass New Deduction Limits: 2026 introduced new "floors" and "caps" on itemized deductions. Because a QCD is an exclusion from income rather than a deduction, it sidesteps these new rules entirely—giving you the full tax benefit of your gift regardless of whether you itemize.
- Increased Limits: For 2026, the annual limit for QCDs has increased to $111,000 per person.
How to Make Your Gift
The process is simple, but the "direct" part is vital. To qualify as a tax-free QCD, the check must be issued by your IRA custodian directly to CLF. If you withdraw the money yourself first, it becomes taxable income.
