Alumni discover four ways IRAs can benefit them and support Wheaton

Think your IRA has just one job? Think again.

Your IRA can do much more than provide for retirement. It can help you create lifetime income, offer valuable tax benefits and amplify your charitable giving to Wheaton.

For generous Wheaton alumni like Jane Temple ’71, an IRA can be a meaningful way to support Wheaton today while planning for the future. Jane uses her IRA and inherited IRA to support the college now and has named Wheaton as a beneficiary, helping extend her generosity to future generations. See how she does it.

Here are four ways to make the most of your IRA for your future, your loved ones and the causes you care about.

1. Leave a legacy, not a tax burden.

Consider naming Wheaton as a full or partial beneficiary of your IRA by percentage or a fixed amount. In this way, your IRA could help reduce the tax burden on your heirs while supporting Wheaton.

  • Reduce taxes for your heirs. Money that your heirs inherit from an IRA is generally taxed as ordinary income. The portion you would leave to Wheaton would not be subject to income tax when the college receives it.
  • Give more efficiently. Instead of leaving your IRA to loved ones, consider designating other assets with more favorable tax treatment for them to inherit.
  • Create a lasting legacy. Your gift can help provide opportunities for future generations of Wheaton students.

2. Put your IRA to work for you and the causes you care about.

During your lifetime, your IRA can be a powerful tool for supporting the causes and organizations that matter most to you.

Beginning at age 59½, you can withdraw money from your IRA without the early-withdrawal penalty. Keep in mind that withdrawals are taxable as ordinary income. You could use the funds from that withdrawal to make a charitable gift to support your favorite charity—like Wheaton. You would receive a charitable deduction.

At age 70½, you have another option: a Qualified Charitable Distribution (QCD). A QCD is a direct transfer from your IRA custodian to a qualified charity.

How it works:

  • Give generously. For 2026, you can make QCDs totaling up to $111,000 from your IRAs to one or more qualified charities.
  • Support Wheaton directly. Your QCD can go directly from your IRA to Wheaton, helping you support the college without first taking the distribution as taxable income.
  • Give tax-free. A QCD is not included in your taxable income, although you cannot also claim a charitable income tax deduction for the gift.
  • Create lifetime income. For 2026, you can use up to $55,000 of a QCD to establish a Charitable Gift Annuity (CGA). Details below.

3. Turn your IRA into lifetime income: CGAs.

A CGA allows you to direct a portion of your QCD to Wheaton while receiving fixed payments for life in return. 

CGAs are generally a great fit for those age 65 or older. For 2026, individuals age 70½ or older can use up to $55,000 of a QCD to establish a CGA.  

It’s a way to create dependable income while making a lasting impact at Wheaton.

How it works:

  • Receive lifetime payments. Use your QCD to establish a CGA with Wheaton or another qualified charity and receive fixed, scheduled payments for life for you or you and your spouse.
  • Gain a tax advantage. The amount used to fund the CGA is transferred directly from your IRA to Wheaton and is not taxed as an IRA distribution. There is no charitable income tax deduction for the gift.
  • Know the tax treatment. Payments made to you and/or your spouse from a CGA are fully taxable as ordinary income.
  • Understand the limitations. Using a QCD to fund a CGA is a one-time opportunity, and the CGA can benefit only you or your spouse
  • Make a meaningful gift. Upon your passing, the remainder of your CGA will go to Wheaton, or your favorite charity, to support the causes you care about.

Note: Whether you fund your CGA with an outright gift or through a QCD, the minimum amount required to establish a CGA at Wheaton is $25,000.

4. Make your required minimum distribution (RMD) work harder.

Once you reach age 73, you must begin taking RMDs from your IRA. (Be sure to check your state’s RMD requirements.) An RMD is the minimum amount you must withdraw from your IRA each year and is generally taxable as ordinary income. 

QCDs and RMDs are not the same. An RMD is a must. A QCD is a choice. 

A QCD can help you satisfy all or part of your RMD while supporting Wheaton, without including the QCD amount in your taxable income.

Your QCD does not have to equal your RMD. You can choose the amount of your QCD, up to the applicable annual limit ($111,000 for an individual, $222,000 for married couples).

RMDs in action:

  • William’s RMD is $50,000. He directs a $75,000 QCD to Wheaton. The QCD satisfies his entire RMD, and the $75,000 charitable distribution is not included in his taxable income.
  • Nancy’s RMD is $120,000. She directs the maximum $111,000 QCD to Wheaton, satisfying $111,000 of her RMD. She takes the remaining $9,000 as an ordinary distribution and pays income tax on that amount.

Put your IRA to work.

Your IRA can do more than support your retirement. Like Jane, with thoughtful planning, you can put this versatile asset to work for you while making a lasting impact at Wheaton.

Learn how to make your IRA work for you and how to establish a life income gift from an IRA on our planned giving website. Or contact the Office of Planned Giving.

Note: Wheaton does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult with an attorney or tax professional regarding your specific legal or tax situation.