Use Your IRA ⁠t⁠o Advance L⁠i⁠ber⁠t⁠y

Use Your IRA to Advance Liberty: How a Qualified Charitable Distribution to JMI Maximizes Your Impact

As a supporter of The James Madison Institute (JMI), you understand the importance of advancing liberty, protecting free enterprise, and shaping sound public policy for future generations. If you are age 70 and six months or older, you have a unique opportunity to champion these values in a financially savvy way—through a Qualified Charitable Distribution (QCD) from your Individual Retirement Account (IRA).

A QCD is one of the most tax-efficient ways to support the causes you care about. And for many donors, it has become a key part of smart retirement and charitable planning.

What Is a Qualified Charitable Distribution (QCD)?

A Qualified Charitable Distribution allows individuals aged 70 years and 6 months or older, to give up to $100,000 per year directly from their traditional IRA to a qualified 501(c)(3) nonprofit—like The James Madison Institute.

Because the distribution goes directly from your IRA to JMI:

• It does not count as taxable income
• It can satisfy all or part of your Required Minimum Distribution (RMD)
• It may reduce your overall tax burden, especially if you do not itemize deductions

In short: a QCD lets you support liberty-focused research and advocacy while keeping more of your retirement income tax-free.

Why Consider a QCD to JMI?

Your gift through a QCD has the same impact as any other contribution to JMI—funding our mission to promote individual liberty, limited government, and economic freedom. But it can also bring extra financial benefits to you:

• Reduces Taxable Income
  Even if you don’t itemize deductions, a QCD allows you to give in a tax-advantaged way.

• Counts Toward Your RMD
  After age 73 (or 75, depending on your birth year), the IRS requires you to withdraw a set amount from your IRA each year. A QCD can satisfy that Required Minimum Distribution (RMD) – without increasing your taxable income.

• Avoids Higher Medicare Premiums
  Because a QCD lowers your taxable income, it may help prevent increases in Medicare Part B and D premiums.

• Maximizes the Impact of Your Gift
  Every dollar you give goes directly toward advancing JMI’s mission—without the tax drag of ordinary income.

Making a Qualified Charitable Distribution is simple. Here’s how:

Your Legacy: Advancing Liberty for the Next Generation

A QCD is more than a tax-efficient giving strategy—it’s a powerful way to transform your Required Minimum Distribution into a meaningful investment in freedom.

By directing your IRA distribution to JMI, you help strengthen principled public policy, expand our research and educational outreach, and support a future where liberty thrives.

Your commitment ensures that the ideas of limited government, personal responsibility, and free enterprise remain strong for decades to come.

If you’re 70 years and 6 months or older, a QCD may be the smartest—and most impactful—gift you make this year.

If you’d like assistance with the process or want to discuss ways to maximize your charitable planning, JMI is here to help. Thank you for your dedication to advancing liberty.

Example: How a QCD Can Save Taxes for a Donor With a $1 Million IRA

Meet Dolley

Dolley is 73 years old and has a $1,000,000 Traditional IRA. Because she is over age 73, she must take a Required Minimum Distribution (RMD) this year.

For simplicity, we will assume:

• Dolley’s RMD is 4% of her IRA balance:
  4% × $1,000,000 = $40,000 RMD
• Dolley is in the 24% federal income tax bracket
• She takes the standard deduction (like most retirees)
• Dolley lives in Florida and enjoys the liberty of no state income tax, so we will not include for this example.

Scenario 1: Dolley Takes Her $40,000 RMD as Income

If Dolley takes the $40,000 RMD into her bank account:

• The full $40,000 is taxable income
• At a 24% tax bracket, Dolley pays:

$40,000 × 24% = $9,600 in federal income taxes

Additional impacts:

• Her higher income could increase Medicare Part B & D premiums (IRMAA)
• Her taxable income increases for Social Security taxation
• She has less flexibility in charitable giving

Dolley receives $40,000, but only $30,400 after taxes.

Scenario 2: Dolley Directs the $40,000 to Charity as a QCD

Instead of taking the RMD herself, Dolley makes a $40,000 Qualified Charitable Distribution (QCD) directly from her IRA to a 501(c)(3) charity (such as The James Madison Institute, Inc.).

Tax impact of the QCD:

• $40,000 does NOT count as taxable income
• Dolley owes $0 in federal income tax on the distribution
• The QCD fully satisfies her RMD

Additional benefits:

• Her income stays lower, which may help keep Medicare premiums lower
• Her adjusted gross income (AGI) is reduced—helpful for many tax calculations
• She can support a cause she cares about without using after-tax income

Dolley pays $0 in taxes and her charity receives the full $40,000.

Side-by-Side Comparison

Bottom Line By using a QCD:

• Dolley eliminates $9,600 in federal income taxes
• She fulfills her entire RMD
• The James Madison Institute receives the full $40,000 instead of a reduced after-tax amount
• Dolley preserves her tax bracket and may avoid Medicare premium increases
  A QCD allows retirees to turn required withdrawals into meaningful charitable impact—at zero tax cost.