Qualified Charitable Distributions (QCDs) for IRA Holders Over 70½

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A Qualified Charitable Distribution (QCD) allows individuals aged 70½ or older to donate directly from their IRA to a qualified charity.

This strategy counts toward your Required Minimum Distribution (RMD) but is not included in your taxable income.

It’s a powerful tool for reducing taxes while supporting causes you care about.

To qualify for a QCD, you must be at least age 70½ at the time of the distribution.

The funds must be transferred directly from your IRA to an eligible charitable organization.

Employer-sponsored retirement plans like 401(k)s do not qualify for QCDs—only traditional IRAs are eligible.

QCDs are excluded from your adjusted gross income (AGI), potentially reducing Medicare premiums and taxation of Social Security benefits.

This is especially helpful for retirees who don't itemize deductions and would otherwise lose out on the tax benefit of charitable giving.

Because it reduces AGI, it may also help you stay below income thresholds that trigger higher tax brackets or phaseouts.

You may contribute up to $100,000 per year per individual through a QCD.

Only public charities recognized by the IRS qualify—donor-advised funds, private foundations, and supporting organizations are excluded.

Ensure the charity is IRS-approved before initiating the transfer to avoid disqualification.

1. Contact your IRA custodian and request a Qualified Charitable Distribution form.

2. Choose a qualified public charity and provide the necessary details.

3. Ensure the custodian sends the funds directly to the charity—QCDs are not valid if you receive the money first.

4. Ask for a receipt from the charity for your records.

5. Report the QCD on your tax return using Form 1040 and note the amount excluded from income.

QCDs offer a strategic way for IRA holders over 70½ to fulfill charitable goals while optimizing tax outcomes.

Whether you’re already taking RMDs or planning for future withdrawals, QCDs can be a tax-efficient giving method.

Talk to a tax professional or financial advisor to ensure proper execution and documentation.

Explore more about QCD strategies and IRA planning:

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