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235 Everett St
East Peoria, IL 61611

1-800-732-8601

Ray’s Story

Ray was an employee of a nonprofit for many years, and each year attended their end-of-year gala fundraiser. He typically wrote a check to support this nonprofit each December. After Ray turned 73, he was required to take a Required Minimum Distribution (RMD) from his IRA each year. Ray met with his financial planner and explained that,

Monica Vinson

between his pension and his wife’s investments, he did not need all of his RMD this year, and planned to give the sum to his favorite nonprofit. His financial planner suggested that, rather than pay income tax on his RMD, he should gift some or all directly to the nonprofit through a Qualified Charitable Distribution. This will provide the charity with a larger, tax-free gift while reducing Ray’s reportable income and income tax bill for the year.