Make a Meaningful Impact
Donate to the 223 Locomotive Foundation Through Your IRA RMD
A Smart, Tax-Efficient Way for Individuals Over 70½ to Support a Worthy Cause
A Unique Opportunity for Generosity and Tax Savings
If you are age 70½ or older, you may be facing the annual obligation to take Required Minimum Distributions (RMDs) from your Individual Retirement Account (IRA). While these distributions are a routine part of retirement, they often come with an unwelcome side effect: increased taxable income and, consequently, higher taxes owed to the IRS. However, there’s a powerful tool at your disposal that allows you to turn this obligation into an opportunity for philanthropy and financial benefit—by donating your RMD directly to the 223 Locomotive Foundation.
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What Is an IRA Charitable Rollover (Qualified Charitable Distribution)?
An IRA Charitable Rollover, officially known as a Qualified Charitable Distribution (QCD), is a provision in the tax code that allows individuals over 70½ years old to donate up to $100,000 per year directly from their IRA to a qualified charity like the 223 Locomotive Foundation. This donation counts toward your RMD but is excluded from your taxable income. That means you can support a cause you care about while potentially lowering your tax bill.
Why Donate Your RMD to the 223 Locomotive Foundation?
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Preserve Railroad History: The 223 Locomotive Foundation is dedicated to restoring and preserving the historic 223 locomotive, a cherished piece of heritage that educates and inspires new generations.
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Maximize Your Giving Power: By donating your RMD via a QCD, the amount goes directly to the foundation, free from federal income tax and the impact of new income tax law limitations.
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Meet Your RMD Requirement: Donations made through a QCD count toward your RMD for the year, satisfying IRS rules without increasing your taxable income.​
Tax Advantages Under New Income Tax Laws
Recent changes to federal income tax laws have made it more challenging for many taxpayers to itemize deductions, due to the increased standard deduction. For many, this means charitable donations no longer provide the same tax benefit as they once did—unless you use a QCD. When you donate your RMD directly to the 223 Locomotive Foundation, you avoid including that amount in your taxable income altogether, which can help you:
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Reduce your adjusted gross income (AGI)
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Potentially lower your Medicare premiums
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Avoid phase-outs of other deductions and credits
Best of all, this strategy qualifies even if you take the standard deduction, allowing you to benefit from your charitable giving regardless of your tax-filing approach.
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How to Make Your Tax-Free IRA Gift
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Contact your IRA administrator and request a direct transfer to the 223 Locomotive Foundation.
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The check must be made payable directly to the foundation—not to you personally.
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Notify the foundation of your gift so they can properly acknowledge your generosity.
By leveraging the IRA Charitable Rollover, you can fulfill your RMD, reduce your tax liability, and make a lasting contribution to railroad preservation. This is a win-win opportunity for you and the 223 Locomotive Foundation!
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Take Action Today
If you are over 70½, consider making your next RMD count for more. Consult your financial advisor or IRA custodian to initiate a Qualified Charitable Distribution to the 223 Locomotive Foundation. Your support will help keep the history and legacy of locomotive 223 alive for generations to come—while offering you real tax benefits under today’s tax laws.
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For more information or assistance with your charitable IRA contribution, contact the 223 Locomotive Foundation or visit our website.