Understanding Required Minimum Distributions – Give Smart. Give Local. Give LUM.

What are Required Minimum Distributions?

If you’re age 73 or older (or turning 73 this year), the IRS requires you to take Required Minimum Distributions from your traditional IRA or other qualified retirement accounts. These withdrawals are considered taxable income—whether you need the funds or not. But did you know there’s a way to use your RMD to make a meaningful difference in the lives of your neighbors while also lowering your tax burden?

What Is an RMD?
An RMD is the minimum amount the IRS mandates you withdraw each year from retirement accounts such as:

Traditional IRAs
SEP IRAs
SIMPLE IRAs
Employer-sponsored retirement plans

RMDs begin at age 73, under current IRS rules.

 

Qualified Charitable Distributions

A Tax-Wise Giving Option: Qualified Charitable Distributions

One of the most beneficial ways to use your RMD is through a Qualified Charitable Distribution. QCDs allow you to give directly from your IRA to a qualified nonprofit—like Lafayette Urban Ministry—without paying income tax on that withdrawal.

Key benefits of a QCD include:

• Counts toward your RMD. Any amount you give (up to $100,000 annually) can satisfy all or part of your required distribution.
• Reduces taxable income. Because the distribution goes directly to charity, it is not counted as taxable income.
• May lower your tax bracket or Medicare premiums.
• Creates a lasting community impact.

Why Donors Choose This Strategy?

Many donors tell us they appreciate the simplicity and tax advantages of QCDs. But even more, they appreciate knowing their RMD is being used not for taxes—but for helping families find stability, providing shelter to neighbors in crisis, offering nutritious food, and supporting children and youth right here in our community.

Your generosity becomes a lifeline of help and hope.

How to Make a QCD Gift

It’s simple:

1. Contact your IRA custodian.
2. Request a Qualified Charitable Distribution to Lafayette Urban Ministry (EIN: 35-1375966).
3. They will send the funds directly to LUM.
4. Let us know so we can thank you properly and ensure it supports the programs most meaningful to you.

A Gift That Transforms Lives

Using a Required Minimum Distribution to support LUM is a powerful way to steward your resources and strengthen the safety net for neighbors in need. If you have questions—or if you’d like to discuss how your RMD can support a specific program—please reach out to Steve Mogensen (smogensen@LUMserve.org) or call 765-423-2691. LUM is grateful for your partnership.