Charitable Giving

Qualified Charitable Distributions (QCDs) allow eligible IRA owners aged 70.5+ to make tax-free transfers directly to charities.

How it works:

  • The IRA trustee sends the funds directly to the charity
  • The donor can request multiple QCDs in a year, but the total amount excluded from income is limited to $105,000 in 2024
  • QCDs can count toward the required minimum distribution (RMD) for the year for those who are at least 73 years old
  • The IRA trustee reports the QCD on the account owner's annual tax return, Form 1099-R

Who can make a QCD?

  • Eligible IRA owners who are at least 70.5 years old
  • Married couples who meet the qualifications and have separate IRAs

How to make a QCD?

  1. Contact the IRA trustee to request a form or instructions for making a QCD
  2. Provide the trustee with the name and address of the charity, and the amount of the donation
  3. Review and submit the request

When to consider making a QCD?

  • A QCD can be a good way to give to charity before the end of the year
  • A QCD can be a way to claim a state tax deduction
  • A QCD can be a way to avoid income restrictions on charitable deductions