QCD

Retirement

A Qualified Charitable Distribution (QCD) lets retirees age 70½+ transfer up to $108,000 (2026) annually directly from a Traditional IRA to a qualified charity. The amount counts toward Required Minimum Distributions but is excluded from gross income — providing tax savings even for those taking the standard deduction. QCDs reduce AGI, which can lower Medicare IRMAA, taxation of Social Security, and various phase-outs. Especially valuable post-2017 tax reform when fewer people itemize. The check must go directly from IRA custodian to charity (not through you). Donor-advised funds don't qualify; the gift must go directly to operating charities.