"Spread the Word of God by Giving to EWTN" - IRA QCD Testimony

"Spread the Word of God by Giving to EWTN" - IRA QCD Testimony
By Karen Silva CFRE, FCEP

Fred and Betty Knecht will celebrate their 60th wedding anniversary inJune.

In March 1970, Betty became paralyzed from the waist down. Despite her limitations, Betty raised their two small boys, then three and a half years and 11 months, and did all the household chores. "They are now both grown, successful and most importantly, good men," says Fred. They are also very proud of their five grandchildren.

Up until a few years ago, Fred and Betty were able to lead an active church and volunteer life. Over the years they served as Eucharistic Ministers, ushered, and helped with funeral dinners. They also volunteered at their local food pantry. Now 81, they have decided that the best way to make a difference is by donating. In addition to EWTN, they give to several organizations with missions close to their hearts. "We feel that we help spread the word of God by contributing to EWTN," says Fred.

Giving directly from their IRA made sense for Fred and Betty. Every year, they have a Required Minimum Distribution (RMD) that would increase their taxable income if they put it into their bank account. Fred and Betty didn't need the additional income and wanted to limit their income tax. They contacted the company that manages their IRA and requested a Qualified Charitable Distribution (QCD) instead of taking their RMD. Giving directly from their IRA satisfied their RMD, and allowed them to bypass income taxes while supporting EWTN.

"We give directly from the IRA because, as we are over age 73, we have to take a RMD each year. If we just take the money out of our IRA, it is taxed [at our income tax rate]. Making donations through the IRA reduces our taxes," says Fred.

The recently passed Secure Act 2.0 increased the age for RMDs to 73, but still allows for QCDs after the age of 70.5. For donors with particularly large IRAs, making QCDs might make sense, as doing so reduces the balance of the IRA, thereby potentially reducing the size of future RMDs once those begin at age 73. An individual can make a maximum gift of $100,000 from his or her IRA annually, and this amount will index for inflation starting in 2024.

QCDs are an increasingly popular method of giving for EWTN Family Members. If you would like more information about how to make a gift from your IRA, contact the EWTN Legacy Giving Program to schedule a no-cost, no-obligation phone call with one of our Gift Planners.

Inspire others by sharing your story with our EWTN Family at (205) 271-4522 or [email protected]. For more stories, visit www.ewtnlegacy.org.