When you’re 73 or older, the IRS makes you take money out of your IRA, a retirement account where contributions may have been tax-deductible and growth is tax-deferred. Also known as traditional IRA, it’s designed to fund your retirement—but what if you don’t need the cash? That’s where qualified charitable distributions, direct transfers from your IRA to a qualified charity that count toward your required minimum distribution come in. QCDs from IRAs let you give money to causes you care about while reducing your taxable income. You don’t pay income tax on the amount donated, and it still satisfies your RMD. No itemizing. No extra paperwork. Just a clean, tax-efficient way to give.
QCDs work best when you’re required to take money out but don’t need it. Maybe you’ve paid off your mortgage. Maybe your kids are grown. Maybe you’ve built up other savings. You still have to withdraw, but instead of paying taxes on that cash, you send it straight to your church, food bank, or university. The IRS allows up to $105,000 per year in QCDs from each individual IRA owner in 2024. That’s not a deduction—it’s an exclusion. The money never hits your taxable income. And because it reduces your adjusted gross income, it can help you avoid higher Medicare premiums and the taxation of your Social Security benefits. This isn’t just charity. It’s smart tax planning.
Not all charities qualify. Don’t send your QCD to a donor-advised fund, private foundation, or supporting organization—they don’t count. The money must go directly to a public charity with 501(c)(3) status. Your IRA custodian handles the transfer; you can’t take the money first and then donate it. And you can’t claim a charitable deduction on top of it. That’s the trade-off: you give up the deduction, but you gain a lower tax bill and simpler filing. If you’re already taking RMDs and giving to charity, QCDs from IRAs are probably the most efficient path forward.
People often mix up QCDs with Roth conversions or backdoor Roths. They’re different tools. QCDs are for those who have traditional IRAs and need to take money out. Backdoor Roths are for high earners trying to get money into Roth accounts. One reduces your taxable income today. The other builds tax-free growth for later. Both matter, but only QCDs let you turn a mandatory withdrawal into a meaningful gift.
Below, you’ll find clear guides on how to set up QCDs, what to watch out for with your IRA custodian, how to coordinate them with other retirement accounts, and why some retirees miss out because they don’t know the rules. Whether you’re giving $5,000 or $50,000, this is one of the few moves in finance that helps your community and your bottom line at the same time.
Qualified Charitable Distributions (QCDs) let retirees over 70½ give directly from their IRA to charity - tax-free. Learn the 2025 rules, limits, eligible charities, and how QCDs reduce taxes better than itemized deductions.
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