IRA Qualified Charitable Distribution

IRA Qualified Charitable Distribution

An IRA qualified charitable distribution (QCD) allows donors to direct up to $100,000 from their traditional IRA to charity tax-free. This option is open to donors age 70 ½ and older who have a traditional IRA, and it counts toward your required minimum distribution (RMD). When given directly to charity, traditional IRA funds do not count in your adjusted gross income and are not subject to income tax. A sample letter to your IRA custodian (Word document) is available, or many custodians provide the option inside a user’s portal.