Support Baystate Health Foundation and other charities you care about through a qualified charitable distribution from your IRA

Supporting your favorite charity this year can have tax benefits to help your wallet.

Required Minimum Distributions (RMD) are mandatory withdrawals you must take each year from your qualified retirement account. If you recently turned 73, you are probably facing your first RMDs. If you’re already taking RMDs, the new year brings a new RMD amount.

RMDs can present a financial conundrum. Like other distributions from qualified retirement accounts, RMDs are taxable and can raise your taxable income. Unlike other withdrawals, RMDs are mandatory even if you do not need or want the money this year. An RMD can also raise your Medicare premiums and increase taxes on your Social Security benefits. It is wise to plan carefully for your RMDs early in the year because there is a 25% penalty tax if you fail to take them as required.

Qualified Charitable Distributions

Fortunately, there is a way for you to support Baystate Health and avoid some of the taxes on your RMDs at the same time. It’s called a Qualified Charitable Distribution (QCD) from your IRA account.

What are the benefits of a QCD?

Unlike other IRA withdrawals, there is no income tax on a QCD withdrawal and – even better – your QCD contribution to Baystate Health can reduce or eliminate the taxable amount of your RMD.

When is the best time to make this gift?

Making a donation with a QCD early in the year can be beneficial. You can take care of fulfilling all or part of your RMD and have the joy of seeing your gift go to work to support the best in care.

What is the difference between an RMD and a QCD?

An RMD is a withdrawal you are required to take each year from your retirement account. A QCD turns your RMD withdrawal into a donation, on which you will not pay income tax. A QCD can be donated to a charity you care about, such as Baystate Health Foundation.

How do I donate through a QCD?

Making a QCD contribution is simple. Just contact your IRA plan administrator and ask to make a QCD contribution to Baystate Health and they’ll take care of the rest. If you have any questions, reach out to the Baystate Health Foundation team at 413-794-5444.

This year, maximize your tax benefits and your generosity by donating through a QCD.