Using Your Required Minimum Distribution, an Op-Ed from KY FFA Foundation Chairman, Nick Carter
Posted November 15, 2024
General
Easy Giving to KY FFA: Letter from Chairman Nick Carter
My fellow FFA supporters,
It has been my great pleasure over the last few years to be able to support the KY FFA Foundation, both financially and with my time & talent, to support Kentucky FFA members across our state.
As a retired businessman/lawyer, I have always tried to do everything in the most efficient and effective way possible. This is true for my charitable giving and I want to tell you more. It’s important to do this now because as we approach a new year, we who are of a certain age, face a Required Minimum Distribution (RMD) from a qualified retirement account.
I have learned that the most effective way to handle my RMD each year is by using it to first - make charitable contributions. If you’re going to give to your church, to the Kentucky FFA Foundation, or any cause that is special to you, I think you should consider instructing your IRA or 401K administrator to make a Qualified Charitable Donation (QCD) to that organization. By doing that, you are meeting your Required Minimum Distribution. Those gifts to charity impact your adjusted gross income on your return. Meaning - it never becomes taxable because it never becomes a part of your Adjusted Gross Income.
I make all my charitable contributions this way and have never paid tax on any draw I’ve made from my rollover IRA.
Certain rules apply. QCD’s must be made by the administrator to the charity. There is a limit on QCD’s of $110,000 in 2025 (it goes up each year). If you have inherited a qualified plan you have an RMD no matter your age, but the treatment of a QCD is the same as for a retiree.
I hope you find as much joy in giving, particularly to the Kentucky FFA Foundation, as I have. The gift of being able to give back to an organization which changed the course of my life over 60 years ago is one of the most satisfying things I have ever received.
