Qualified Charitable Distributions (QCD)

A Qualified Charitable Distribution (QCD) allows individuals age 70½ or older to donate up to $100,000 directly from their traditional IRA to a qualified charity. This transfer counts as a distribution for tax purposes but is not included in taxable income, satisfying required minimum distribution (RMD) requirements without increasing taxable income. QCDs are an efficient way for retirees to support causes they care about while potentially reducing their tax liability. Proper documentation and adherence to IRS rules are essential for the distribution to qualify.