Qualified Charitable Distributions (QCD) — Complete 2025 Guide
Use IRA QCDs to satisfy RMDs while keeping income off your tax return. Learn limits, age rules, eligible charities, and planning strategies.
Published on 9/19/2025
What Is a QCD?
A Qualified Charitable Distribution is a direct transfer from your IRA to a qualified 501(c)(3) charity. It can satisfy your RMD and is excluded from Adjusted Gross Income (AGI).
Key Rules
- Eligible from age 70.5
- Annual limit indexed for inflation (per person)
- Must go directly from IRA custodian to charity
- Not available from 401(k)/403(b) unless rolled to IRA first
Why QCDs Beat Itemizing
Because a QCD reduces AGI, it may lower IRMAA, reduce the taxation of Social Security, and increase eligibility for deductions/credits. You get the benefit even if you take the standard deduction.
Planning Strategies
- Pair with RMD to keep AGI lower
- Front‑load charitable giving in high‑income years
- Use QCD instead of donating appreciated stock if simplicity matters
Common Mistakes
- Reimbursing yourself or receiving benefits from the charity
- Using donor‑advised funds (not eligible)
- Forgetting to obtain acknowledgment letters
Example
Tom has a $10,000 RMD. He directs $8,000 as a QCD to his church and takes $2,000 as cash. Only $2,000 hits AGI, helping him avoid an IRMAA bracket.
Helpful Links
Quick Checklist Before You Send a QCD
- Confirm the charity is a qualifying 501(c)(3)
- Ask custodian to send funds directly to the charity
- Keep acknowledgment letters for your records
- Track annual limits and coordinate with your RMD amount
QCDqualified charitable distributionIRARMDcharityAGI