There’s a tax-smart way to give to charity if you’re 70½ or older—one that reduces your taxable income while supporting your favorite causes. Known as a Qualified Charitable Distribution (QCD), it’s one of the most underutilized tax planning tools.
When every dollar counts, knowing how QCDs work can mean the difference between a minor tax break and a significant one. To save money while donating to charities, let’s take a look at what you need to know about QCDs.
What Is a Qualified Charitable Distribution?
IRA holders are allowed to donate up to $108,000 in 2025 ($115,000 in 2026) through qualified charitable distributions from their taxable accounts without taking required minimum distributions (RMD). As a result, donors may avoid the phasing out of other tax deductions or being pushed into higher tax brackets.
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