Using Your IRA Distribution Strategically

Even in uncertain economic times, people still want to support the charities they care about, especially if they can do so without jeopardizing their financial security. One effective way to do this is by strategically directing unneeded Individual Retirement Account (IRA) distributions to a charity, which has added financial benefits for those who can make this type of gift.

If you are 73 or older and have an IRA, you are likely familiar with the Required Minimum Distribution (RMD). But did you know that you can use your RMD to support your favorite charities, like The NRA Foundation? Let's explore the benefits of this strategy and how it can support your financial and philanthropic goals.

Lowering Taxable Income
Every year, starting at age 70 ½, if you do not need the income from your retirement account, you can distribute up to $108,000 to a qualified charity instead of taking it as personal income. This is sometimes called an IRA Charitable Rollover or a Qualified Charitable Distribution (QCD). These distributions are excluded from your taxable income.

Then, once you turn 73 and begin taking Required Minimum Distributions, QCDs can count towards satisfying all or part of your RMD. That means you’d lower your taxable income and support a cause you care about at the same time.

Get Income Back
Thanks to the “Legacy IRA Act,” IRA owners have the option to fund a Charitable Gift Annuity (CGA) using IRA distributions. A CGAs provides income back to you or another person for life. After that, the remaining amount is donated to charity.

CGAs funded with IRA distributions are capped at a maximum of $54,000 once in a lifetime. And if you choose to divide the $54,000 across multiple charities, all the annuities must be completed within the same tax year. However, each spouse with an IRA can take advantage of this opportunity and even name each other as beneficiaries.

The NRA Foundation offers Charitable Gift Annuities. To learn more, contact us at 877-672-4483, option 2, or [email protected]. With your date of birth, we can prepare a personalized gift illustration showing you the potential income and ultimate charitable impact.

Take Action: IRA --> Charity:
In 2025, you can give up to $108,000 from your and your spouse’s IRA directly to qualified charities like The NRA Foundation, The NRA Whittington Center, the NRA Civil Rights Defense Fund, or the NRA Freedom Action Foundation.

To make a charitable gift or to fund a Charitable Gift Annuity, here are the critical steps:

1. Contact your IRA representative and request their form to make an IRA distribution or withdrawal. Depending on the form, donors usually choose “charitable distribution” or “normal withdrawal.”
2. Distribution from your IRA must go directly to the charity. So, before you turn in the form, contact us for The NRA Foundation’s wire, electronic, or mailing instructions. Email [email protected] or call 877-672-4483, option 2.
3. If you want your distribution to fund a CGA, let us know, and we will generate an agreement outlining the terms and payment schedule.

Using an IRA distribution to satisfy your RMD can be a smart strategy that benefits you and the charities you support. Even in a down market, RMDs are still required. By directing all or part of it to charity, you can reduce your taxable income while joining thousands of others in advancing Second Amendment freedoms through the promotion of safe, responsible firearms ownership.

Disclaimer: Consult your legal, tax, or financial advisor to determine the best strategy for your unique situation. The NRA and its affiliates do not provide legal or tax advisory services. As with any financial decision, talk to your financial advisor for details relevant to your personal situation.