Give Smarter, Make a Greater Impact: Understanding RMDs and QCDs
Did you know your retirement savings could help support charitable causes while potentially reducing your taxable income? For individuals age 70½ and older, a special giving opportunity may provide a tax-efficient way to support the PBS Impact Foundation, Inc.
As the end of the year approaches, understanding two important retirement terms—Required Minimum Distributions (RMDs) and Qualified Charitable Distributions (QCDs)—could help you make the most of your charitable giving.
What Is a Required Minimum Distribution (RMD)?
A Required Minimum Distribution is the amount the federal government generally requires individuals to withdraw annually from certain retirement accounts, including traditional IRAs.
Under current rules, most individuals must begin taking RMDs at age 73, although the applicable starting age depends on when they were born. These withdrawals are generally subject to federal income tax.
For individuals who do not need their entire RMD for living expenses, charitable giving may provide an opportunity to put those funds to meaningful use.
What Is a Qualified Charitable Distribution (QCD)?
A Qualified Charitable Distribution allows individuals age 70½ or older to transfer money directly from an eligible IRA to a qualifying charitable organization, such as the PBS Impact Foundation.
Unlike a typical IRA withdrawal, an eligible QCD is generally excluded from federal taxable income.
In 2026, eligible individuals may make up to $111,000 in QCDs annually. Married couples may each qualify for this limit if they have their own eligible IRAs.
Importantly, a QCD can also satisfy all or part of an individual's annual RMD.
How Does It Work?
Consider this example:
A donor is 75 years old and must withdraw $12,000 from a traditional IRA this year. However, the donor does not need the entire amount for personal expenses.
Instead of withdrawing all $12,000 into a personal bank account, the donor directs the IRA custodian to transfer $5,000 directly to the PBS Impact Foundation.
The result:
The $5,000 gift supports scholarships, youth development, and other charitable initiatives.
The $5,000 generally counts toward the donor's $12,000 RMD.
The $5,000 is generally excluded from federal taxable income.
The donor needs to withdraw only the remaining $7,000 to satisfy the RMD, assuming no other distributions have been taken.
Unlike many charitable deductions, the QCD benefit is available to eligible taxpayers even if they do not itemize deductions.
How to Make a QCD Gift
Making a Qualified Charitable Distribution generally involves four steps:
Confirm eligibility. You must be at least 70½ years old when the distribution is made.
Contact your IRA custodian. Request a Qualified Charitable Distribution payable directly to the PBS Impact Foundation, Inc.
Provide the Foundation's information. Your custodian may request the Foundation's legal name, mailing address, and Employer Identification Number.
Complete the gift before year-end. Coordinate with your custodian to ensure the distribution is completed within the applicable tax year.
Turn Retirement Savings Into Lasting Impact
A Qualified Charitable Distribution is more than a potential tax-planning strategy. It is an opportunity to transform retirement savings into educational opportunities, youth development programs, scholarships, and community investments.
Whether your passion is helping students pursue higher education, strengthening Sigma Beta Clubs, or supporting charitable initiatives across the country, your generosity can help advance the PBS Impact Foundation's mission.
This year, consider making your retirement savings part of your philanthropic legacy.
Important Tax Information: This article is provided for educational purposes only and does not constitute tax, legal, or financial advice. QCDs must satisfy IRS eligibility requirements, including direct payment to an eligible charitable organization. QCDs cannot also be claimed as charitable income-tax deductions. Donors should consult their tax advisor or financial professional before initiating a distribution. Tax rules and annual limits are subject to change.
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