RMD Strategy

Evelyn, age 76, must take a required minimum distribution (RMD) of $40,000 from her traditional IRA in 2026. She does not need the income and plans to donate $25,000 to a qualified charity.

Which of the following strategies would MOST effectively reduce Evelyn’s adjusted gross income (AGI)?

1. Take the full RMD and then claim a charitable itemized deduction
2. Transfer $25,000 directly from the IRA to the charity as a Qualified Charitable Distribution (QCD)
3. Donate appreciated securities from her brokerage account instead of using IRA assets
4. Convert $25,000 of the IRA to a Roth IRA and donate cash to charity