An often overlooked benefit of maintaining significant assets in a Traditional-IRA is the ability to satisfy our annual RMD (Required Minimum Distribution) with tax free QCD (Qualified Charitable Contribution) withdrawals for charitable purposes. This enables funding annual giving to church and charity with earnings that have escaped taxation both on the way in and on the way out! Granted, the RMD's are going to keep getting larger and larger as the years go by, but since the increasing RMD factor roughly achieves account depletion within one's actuarial life expectancy, that suits us just fine. Our entire life, we have tithed our combined income, giving away at least 10% every year, and even more in recent years when a larger portion of our income has come from investment earnings. Coincidentally, our Trad-IRA is currently close to 10% of our net worth, and we do not need it to meet essential expenses -- although we do consider giving back generously an essential expense for our mental health and well-being. Consequently, using-up the Trad-IRA by giving away QCDs keeps the federal taxman out of the transaction entirely, and helps us remember that accumulated wealth is really just another gift in the first place. .
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An often overlooked benefit of maintaining significant assets in a Traditional-IRA is the ability to satisfy our annual RMD (Required Minimum Distribution) with tax free QCD (Qualified Charitable Contribution) withdrawals for charitable purposes. This enables funding annual giving to church and charity with earnings that have escaped taxation both on the way in and on the way out! Granted, the RMD's are going to keep getting larger and larger as the years go by, but since the increasing RMD factor roughly achieves account depletion within one's actuarial life expectancy, that suits us just fine. Our entire life, we have tithed our combined income, giving away at least 10% every year, and even more in recent years when a larger portion of our income has come from investment earnings. Coincidentally, our Trad-IRA is currently close to 10% of our net worth, and we do not need it to meet essential expenses -- although we do consider giving back generously an essential expense for our mental health and well-being. Consequently, using-up the Trad-IRA by giving away QCDs keeps the federal taxman out of the transaction entirely, and helps us remember that accumulated wealth is really just another gift in the first place. .
Post: Traditional or Roth
Link to comment from August 30, 2026