Retirement accounts such as IRAs, 401(k)s, and 403(b)s are often among the most heavily taxed assets in an estate.
By designating ministry as a beneficiary of all or a portion of these accounts, you can direct funds to Gospel work that might otherwise go largely to taxes.
During life, individuals age 70½ or older may be able to make Qualified Charitable Distributions (QCDs) directly from an IRA to charity, satisfying required minimum distributions while reducing taxable income.
Using retirement assets for charitable purposes can free other, more tax-favored assets to pass to family, creating a wise balance between caring for loved ones and supporting ministry.
TAX-FREE IRA WITHDRAWALS. By using a Qualified Charitable Distribution (QCD), individuals 70_ or older may transfer IRA funds directly to charity, and avoid counting the withdrawal as taxable income. This allows for tax-efficient giving while maximizing charitable impact.
SATISFY YOUR REQUIRED MINIMUM DISTRIBUTION (RMD). A QCD may count toward your Required Minimum Distribution (RMD), helping you meet IRS requirements while directing funds to meaningful charitable causes and avoiding additional taxable income.
LOWER YOUR TAXES BY REDUCING YOUR ADJUSTED GROSS INCOME (AGI). Donating through a QCD could lower your Adjusted Gross Income (AGI), potentially reducing overall tax liability while allowing you to support the charities you care about most.
Paul is 73 years old and has an RMD requirement of $5,000 this year. He also faithfully tithes to his church. Rather than receiving his RMD, which would increase his taxable income for the year, he contacts his IRA administrator and instructs them to make a $5,000 QCD gift to his church, directly from his IRA account. This meets his RMD requirement without adding to his taxable income, and fulfills a portion of his tithe to his church.
Paul is 73 years old and has an RMD requirement of $5,000 this year. He also faithfully tithes to his church. Rather than receiving his RMD, which would increase his taxable income for the year, he contacts his IRA administrator and instructs them to make a $5,000 QCD gift to his church, directly from his IRA account. This meets his RMD requirement without adding to his taxable income, and fulfills a portion of his tithe to his church.
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