Qualified Charitable Distribution
Updated 11/20/2025
Do you give money to charity? Do you own an IRA? Are you over age 70 ½? If so, you have an opportunity to give directly from your IRA to your favorite charities tax free! The IRS calls this arrangement a qualified charitable distribution (QCD) and it reduces your tax bill by excluding from income your charitable donation. The amount of savings will depend on your personal tax situation, but it could be meaningful.
Key points:
IRA owner must be over the age of 70 ½
Contribution must be paid directly from your IRA to the charity
Able to exclude up to $108,000 of QCD from your taxable income
Benefits:
Reduced taxable income, even if you do not itemize deductions
Your tax savings could allow a more generous gift than simply donating cash
Can count towards your required minimum distribution (RMD) for the year (if applicable)
Potential reduction in Medicare surcharge premiums due to lower adjusted gross income
As you reflect on your giving, please consider how a QCD might help you and the charities you support reach your goals together.
This blog is for general educational purposes and does not constitute specific financial, tax, or legal advice. Please contact our firm for precise advice applicable to your personal financial situation.