Financial Planning

FINANCIAL planning

Use Your IRA to Support Your Charitable Goals

2024 Wealth management bulletin

Jacqueline A. Manley, JD, CFP®
Senior Vice President
Trust Counsel
& Director of Trust Tax Services
Are you charitably inclined, at least 70 ½, and looking for methods to fund your charitable goals? If you are an IRA owner and at least 70 ½, you can use your IRA to make charitable gifts. The IRS has increased the starting age for required minimum distributions (“RMD”) over the past several years, but the age to utilize Qualified Charitable Distributions (“QCD”) remains 70 ½.

In 2024, IRA owners may transfer up to $105,000 (indexed for inflation) to eligible charities. This amount is limited per person, not per IRA. The QCD must be made from the IRA trustee directly to the charity to qualify. Eligible charities include churches, schools, hospitals, government units, and publicly supported charities. Payments to multiple charities can be made, as long as the $105,000 limit is not exceeded.

If you reached the RMD age, but do not rely on the RMD for living expenses, a QCD is a good option to fulfill your RMD requirement and charitable pledges in one. The QCD counts as a RMD payment and is excluded from gross income; the IRA owner can achieve the benefit of a charitable donation without itemizing deductions on their tax return. If the IRA owner still contributes to IRAs, then the maximum excluded amount from gross income may be reduced.

QCDs can be a great alternative vehicle to make charitable donations. As always, we are available to help you meet your financial goals – reach out to any of our LCNB| Wealth officers for a more detailed discussion on if a QCD is the right path for you.

LCNB National Bank (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services.

Please visit for more detailed information.