1. Qualified Charitable Distributions: A Simple Strategy with Meaningful Impact 

For clients age 70½ and older, a Qualified Charitable Distribution (QCD) remains one of the most effective ways to support charitable causes during their lifetime. 

A QCD allows clients to transfer funds directly from their IRA to a qualified public charity, including The Associated. The distribution counts toward the client’s Required Minimum Distribution (RMD) while generally being excluded from taxable income. 

For clients who do not need their full RMD for living expenses, a QCD can be an attractive alternative to receiving a taxable distribution and making a separate charitable gift. 

Beyond the tax benefits, QCDs can serve as an effective vehicle for clients seeking to align their charitable giving with their broader financial and estate planning objectives. 

2. Charitable Gift Annuities Funded with IRA Assets 

The Secure 2.0 Act introduced a new planning opportunity that many clients and advisors are still exploring. 

Eligible clients may make a one-time transfer from an IRA, up to the allowable limit, to establish a charitable gift annuity. This strategy can appeal to clients who are charitably inclined but also value predictable lifetime income. 

For the right client, a charitable gift annuity funded through IRA assets can help achieve multiple objectives: 

While not appropriate for every situation, this option may be particularly attractive for clients seeking a balance between philanthropy and income security. 

3. IRA Beneficiary Designations as a Legacy Planning Tool 

For many charitably minded clients, the most tax-efficient charitable gift may ultimately be made at death. 

Because traditional IRA assets can be subject to income taxation when inherited by individual beneficiaries, advisors frequently identify retirement accounts as ideal assets for charitable bequests. Naming a charity as beneficiary of all or a portion of an IRA can allow those assets to pass free of income tax, while preserving other assets that may receive a step-up in basis for heirs. 

For clients who wish to benefit both family and charitable causes, strategic beneficiary designations can be an effective way to allocate assets in a manner that maximizes overall tax efficiency. 

These conversations often resonate with clients who have supported charitable organizations throughout their lifetimes and want their estate plans to reflect the values that shaped their giving. 

The Advisor’s Role: Connecting Tax-Efficient Planning with Client Values 

While tax considerations are often the catalyst for charitable planning discussions, many clients are equally motivated by the opportunity to create a lasting impact on the people and communities they care about most. 

As trusted advisors, estate and financial professionals are uniquely positioned to help clients evaluate charitable strategies that complement broader financial, retirement, and estate planning goals. 

At The Associated, we work closely with advisors, attorneys, accountants, and their clients to explore charitable planning opportunities that support both philanthropic and financial objectives. Whether evaluating a Qualified Charitable Distribution, discussing a charitable gift annuity, or considering beneficiary designations, our team can provide charitable planning expertise and illustrations to support the planning process. 

By incorporating charitable planning into conversations about IRA assets, advisors can help clients achieve meaningful tax efficiencies while advancing the causes and values that matter most to them.