Qualified Charitable Distributions: The Best Tax Move for Charitable Retirees

Who qualifies

Anyone 70½ or older with a traditional IRA. (Not 401(k) — you'd need to roll to an IRA first.)

Why it's better than donating after RMD

• A normal RMD lands in your taxable income, increasing AGI.
• Higher AGI can trigger IRMAA Medicare surcharges, tax more of your Social Security, and push you into higher brackets.
• A QCD skips your income entirely — you get the deduction without itemizing.

How to execute

1. Tell your IRA custodian to send a check directly to the charity (not to you, then forwarded).
2. Track the QCD separately — your 1099-R won't break it out; you mark it on your tax return.
3. Keep the charity's receipt.

Limits

• $105,000 per person per year (indexed for inflation).
• Married couples can each do $105,000 from their own IRAs.
• Must go to a 501(c)(3) public charity (not a donor-advised fund).

Bottom line

If you're 70½+ and you give to charity at all, QCDs are the single most efficient way to do it. Saves real money on Medicare premiums and Social Security taxation.