A Qualified Charitable Distribution (QCD) is a highly tax-efficient philanthropic tool that allows traditional IRA owners aged 70½ or older to transfer funds directly from their retirement account to a qualified 501(c)(3) public charity. The primary advantage of a QCD is that the transferred amount (up to an inflation-adjusted limit of $111,000 per individual) is entirely excluded from the donor's adjusted gross income (AGI).

 

This direct transfer can be used to satisfy all or part of your annual Required Minimum Distribution (RMD) - which kicks in at age 73 - without pushing you into a higher tax bracket or triggering increases in income-based Medicare premiums. Because it is an above-the-line exclusion from income rather than an itemized deduction, a QCD delivers an immediate financial benefit regardless of whether you claim the standard deduction or itemize your taxes.

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We've included resources and forms to set up your Qualified Charitable Distribution.