Leanne Kampeter CFP ®
Senior Vice President & Financial Advisor, LPL
As cooler weather approaches, many people turn their attention to football and the holiday season. For financial advisors, however, this period also marks Required Minimum Distribution (RMD) season—a time to help clients age 73 and older fulfill mandatory distributions from their Traditional IRA accounts.
As you likely know, distributions from Traditional IRAs are generally subject to federal income tax. However, individuals who are charitably inclined may be eligible to make a Qualified Charitable Distribution (QCD) directly from an IRA to an eligible charitable organization. When applicable requirements are met, the QCD may satisfy all or part of an individual’s Required Minimum Distribution (RMD) while excluding the donated amount from taxable income. Key benefits include:
- The funds are made payable to an eligible charitable organization by the IRA custodian, so the distributed amount is generally excluded from adjusted gross income.
- Because the tax benefit does not depend on itemizing deductions, a QCD may provide a greater tax advantage than a conventional charitable contribution.
We encourage you to speak with your tax preparer to see how this giving option can benefit you.
Although Required Minimum Distributions (RMDs) must be satisfied by December 31, 2026, our office seeks to complete all RMD processing by November 30, 2026, to allow sufficient time for timely execution before the busy holiday season.
As year-end approaches, we encourage our clients to plan ahead and contact our office by November 30, 2026, to help ensure your RMD is processed in a timely manner. If charitable giving is part of your financial plan, speak with your tax preparer about whether a Qualified Charitable Distribution may be a tax-efficient way to support the causes you care about.
While the tax or legal information provided is based on our understanding of current laws, and has been gathered from sources believed to be reliable, it cannot be guaranteed. Federal tax laws are complex and subject to change. Neither LPL Financial, nor its registered representatives, provide tax or legal advice. We recommend you consult with a qualified tax or legal advisor to discuss your specific situation.
Category: Family & Estate
