Wait! Don't Pay Tax on Your RMD

January 2026

Stephanie Thomas

If you are 73 or older, the IRS requires you to withdraw each year from certain retirement accounts, including traditional IRAs. This is called a Required Minimum Distribution (RMD) and is considered taxable income unless you designate all or part of it as a qualified charitable donation (QCD). In that case, you do not pay tax on the amount you donate.

The good news is that you can put those tax-free dollars to use right here in SaddleBrooke. As a 501(c)3 non-profit organization, Senior Village at SaddleBrooke is eligible to receive your RMD. This donation will not only benefit you by saving tax dollars and reducing your adjusted gross income but will also support services to your neighbors and provide increased quality of life in our community.

As with most government rules and regulations, there’s a set process to follow to make sure your RMD is not taxed. The Innovative CPA Group (https://www.innovativecpagroup.com) offers this information: You’ll need to contact your IRA custodian and instruct them to send a check directly to Senior Village at SaddleBrooke, not to your personal bank account. Make sure the check is made payable to the organization and include identifying details (like your name and address) so Senior Village can acknowledge your gift with grateful thanks.

The Internal Revenue Service provides worksheets to calculate your RMD each year. Consulting with a certified public accountant or your financial advisor is also advised.