Qualified Charitable Distributions (QCDs): Giving Strategically in Retirement

A Qualified Charitable Distribution (QCD) is a powerful tool that allows individuals aged 70½ or older to make direct donations from their IRA to a qualified charity. This strategy can help satisfy Required Minimum Distributions (RMDs) without adding to taxable income—an important consideration for retirees managing Medicare premiums, IRMAA thresholds, and overall tax exposure. The QCD must be made directly from the IRA custodian to the charity for it to count, and the annual limit is up to $100,000 per person.

Joel Marius, RICP®, helps retirees understand how QCDs fit within their broader retirement income and tax strategy. His approach includes reviewing charitable goals, identifying eligible organizations, and coordinating withdrawals with other income sources to maintain tax efficiency and compliance with IRS rules.

Retirees should be aware that QCDs cannot be made to donor-advised funds or private foundations, and proper documentation is essential to receive the exclusion from taxable income. Timing also matters—QCDs must be completed before the end of the calendar year to count toward that year’s RMD.

At 100Retire, Joel Marius integrates Qualified Charitable Distributions into comprehensive retirement plans, helping individuals align their giving objectives with their income strategy, ensuring their generosity complements their financial structure and long-term planning goals.