Make a Difference for Those in Need ... and Save on Medicare Premiums?

Make a Difference for Those in Need ... and Save on Medicare Premiums?
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The recent release of 2024 Medicare Part B premium rates, including adjusted rates for those in higher income brackets, may give some MOAA members the chance to consider charitable donations as a way to reduce their own health care costs.




It’s one of several techniques for smart charitable giving – the subject of a recent MOAA webinar featuring Lila Quintiliani, ChFC, AFC, MOAA’s program director for financial and benefits education and counseling, as well as Daniel Kopp, MA, MS, CFP, the founder of Wise Stewardship Financial Planning and longtime MOAA member.


Kopp discussed Qualified Charitable Distributions (QCDs) – payments directly from your IRA custodian to a qualified charity. Many retirees in their 70s and beyond are familiar with these payouts, as they can be used to help satisfy Required Minimum Distributions (RMDs).


QCDs also are excluded from your taxable income, which results in a lower Modified Adjusted Gross Income (MAGI) – the figure used to calculate the Income Related Monthly Adjustment Amount (IRMAA) added to your Medicare premium.


Nearing acronym overload? Here’s the bottom line: Donating via a QCD will lower your income levels and could put you in line for a lower Medicare Part B rate in future years. IRMAA calculations generally rely on tax filings from two years ago, though appeals are possible.


[RELATED: Ways to Give to MOAA Charities (Includes QCD Information)]


“QCDs can be extremely powerful if we are doing careful income tax planning on a year-by-year basis,” Kopp said during the webinar. “We can save, in many cases, hundreds, even thousands of dollars a year in tax planning. … QCDs can not just benefit you in the year that you get them, but they can also save you down the road.”


Kopp suggested speaking with your financial adviser about the use of QCDs, especially as not all charitable donations will result in a MAGI deduction. Contributions to your retirement account may reduce the amount of QCD allowed. While MOAA cannot offer financial guidance specific to your situation, resources at will help prepare you for such a discussion.


The webinar also addressed Charitable Gift Annuities (CGAs), Donor-Advised Funds (DAFs), and other giving strategies. It also covered details on MOAA’s charitable efforts, including ways to donate using these tools and others to support The MOAA Foundation’s Crisis Relief Program.


[FROM 2022: How to Maximize Your Charitable Donations]


Need more? MOAA Premium and Life Members can watch the entire charitable giving webinar at this link ( login required). Not a member? Head here to register and receive access to the recording.


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About the Author

Kevin Lilley
Kevin Lilley

Lilley serves as MOAA's digital content manager. His duties include producing, editing, and managing content for a variety of platforms, with a concentration on The MOAA Newsletter and Follow him on X: @KRLilley