IRS allows sending RMDs directly to charity to avoid taxes; 3 ETFs can replace lost income.

The IRS permits retirees to send their required minimum distributions (RMDs) directly to qualified charities, avoiding the RMD being counted as taxable income through a Qualified Charitable Distribution (QCD). While this strategy eliminates tax on the RMD, it also removes the income retirees rely on. To restore that income, three ETFs are recommended: Vanguard Dividend Appreciation ETF (VIG) for dividend growth, iShares Preferred and Income Securities ETF (PFF) for high current income, and iShares Treasury Floating Rate Bond ETF (TFLO) for stable, low-risk income. Each ETF offers a different approach to rebuilding cash flow without increasing tax liability, helping retirees maintain income while benefiting from tax savings.