Make the Most of Your Required Minimum Distribution
Explore how aligning your RMD with Giving Tuesday can bring purpose to your financial plan and meaning to your giving
As the season of gratitude approaches, many of us take time to reflect on what truly matters—family, faith, purpose, and the impact we leave on others. It’s a natural time to think about generosity in all its forms, not just the gifts we give but the ways we share what we’ve been given. For those in or near retirement, one often-overlooked opportunity to give thanks and give back lies in something as practical as an RMD.
It may sound purely financial, but an RMD can be so much more than that. With thoughtful planning, it can become a beautiful expression of appreciation, allowing you to support the causes closest to your heart while meeting your financial obligations. And with Giving Tuesday coming up on Dec. 2, it’s the perfect moment to explore how your RMD could help make a difference.
What Is a Required Minimum Distribution (RMD)?
A Required Minimum Distribution is the minimum amount that the IRS requires you to withdraw annually from certain tax-deferred retirement accounts once you reach a specific age. The rule exists because these accounts—like traditional IRAs, 401(k)s, and 403(b)s—were built to help you save for retirement with tax-deferred growth. Eventually, though, the IRS wants its share of the taxes you deferred along the way.
Under current rules, if you turned 73 after December 31, 2022, you must begin taking RMDs the year you reach that age. For those born later, the age may increase again in future years due to legislative changes like the SECURE 2.0 Act of 2022. The RMD ensures that retirement savings are distributed over time rather than indefinitely shielded from taxation.
How Is an RMD Calculated?
The IRS uses a simple formula: your retirement account balance at the end of the previous year is divided by a “life expectancy factor” based on your age and, in some cases, your spouse’s age. The calculation determines the minimum amount you must withdraw during the year.
While you can always withdraw more than the required amount, withdrawing less or missing your RMD deadline can result in penalties. This makes understanding and planning your RMDs a vital part of any retirement strategy.
Turning an Obligation into Opportunity
It’s easy to view RMDs as a tax burden, but they can also be a meaningful opportunity to create impact. If you’re already in a position where you don’t need those funds for daily living, you can use them to support organizations that align with your values through a Qualified Charitable Distribution (QCD).
A QCD allows individuals aged 70½ or older to transfer up to $100,000 directly from an IRA to a qualified charity. This donation counts toward your RMD for the year but doesn’t increase your taxable income, effectively turning a required withdrawal into a purposeful act of giving.
For many retirees, QCDs serve as a way to express gratitude for the blessings of financial security by giving back to the community, supporting local nonprofits, or funding causes that matter most, all without affecting their adjusted gross income. It’s a simple, heartfelt way to align your financial resources with your values.
Why RMDs Matter
Beyond the tax implications, RMDs represent the culmination of years of disciplined saving and planning. They remind us that wealth, when managed intentionally, can extend far beyond personal comfort and serve others as well. Whether you use your RMD to support a charitable organization, help your family, or reinvest in your community, the key is to make those distributions work in a way that brings meaning to your life.
Giving Tuesday 2025: A Perfect Time to Give Back
Giving Tuesday falls on Dec. 2 this year. This Global Day of Generosity invites people everywhere to come together and make a difference. It’s an ideal opportunity to pair your RMD strategy with your heart for giving. Imagine turning a required withdrawal into a scholarship for students, a meal for a family in need, or funding for a local charity that’s close to your heart.
Giving Tuesday reminds us that even in the technicalities of financial planning, there’s room for kindness and connection. And when your generosity becomes part of your plan, it not only fulfills your financial responsibilities but also contributes to a legacy that reflects what matters most to you.
Planning with Intention
At IntentGen Financial Partners, we believe that the best financial plans are built around purpose. Managing over $728 million in assets and helping clients direct millions in charitable gifts, our team knows that intentional planning is about more than numbers—it’s about aligning wealth with meaning.
If you’re approaching an RMD year or simply curious about how to incorporate giving into your financial strategy, we’d love to guide you through your options. Together, we can explore how your Required Minimum Distribution might support both your future and the causes that inspire you.
Let’s talk about how you can plan intentionally and live generously—today, and for years to come. You can reach us at (630) 821-6990 or visit us online at IntentGen.com.