Passing Your Values to the Next Generation

FOR DECADES, Indiana University School of Medicine alumni have exemplified steady hands and compassionate care. Their service has transformed countless lives and inspired today’s students. Alumni generosity in supporting scholarships connects the present to the past.

While there are many ways for philanthropic-minded alumni to give, I’d like to discuss one tax-smart option for those with IRAs: the Qualified Charitable Distribution (QCD).

To help you decide whether making a QCD gift is a good fit for you, here are four important things to know.

The “Golden” Age: 70½

You may know that, for many, the Required Minimum Distributions (RMDs) age for IRAs has shifted to 73. However, you can begin making tax-free charitable gifts through a QCD at 70½. This lets you make an earlier impact, reduce your IRA balance, and potentially lower future RMDs. This may also have a positive impact on your Social Security benefits and Medicare premiums.

Direct Impact, Zero Tax

When you instruct your IRA administrator to send a QCD gift directly from your IRA to a charity like the IU School of Medicine, that money is excluded from your taxable income. Unlike a standard IRA withdrawal, you never pay income tax on the QCD gift, and the School of Medicine receives 100% of your intended support. Plus, for those already required to take an RMD each year, the amount of your QCD gift can also satisfy a part of or all of your annual RMD.

New Limits for 2026

For the 2026 tax year, an IRA owner over age 70½ can make a QCD gift of up to $111,000. If your spouse has a separate IRA and is also over 70½, they can make a QCD gift of up to $111,000 from their IRA. Together, a married couple could make QCD gifts totaling up to $222,000 that fund student scholarships or critical medical research. This amount is enough to endow a new fund bearing your name that provides durable support for scholarships or critical research.

No Tax Deduction

When you make a QCD gift to the School of Medicine, it is tax-free. However, the IRS does not allow a charitable income tax deduction for these gifts.

If you are an IRA owner eligible to make a QCD gift, utilizing this tax-smart gifting strategy can help ensure that your professional values endure well into the future.

If you have questions about QCD gifts or want to learn more tax-smart ways to support the IU School of Medicine, please contact Tim W. Ueber, senior director of planned giving, at twueber@iu.edu or 317-274-0187.