QCD = Qualified Charitable Distribution.

If 70½+, transfer up to $105,000/year directly from IRA to charity (501c3).

QCD satisfies RMD but excluded from taxable income (vs regular withdrawal taxed 10-37%).

Example: Age 75, $50k RMD.

QCD $30k to charity = $30k excluded from income (saves $7,200 at 24% tax), withdraw remaining $20k taxed = $4,800.

Total tax: $4,800.

Alternative: withdraw $50k ($12k tax), donate $30k cash (itemize $7,200 deduction) = $4,800 tax BUT increases AGI triggering IRMAA ($103k threshold).

QCD avoids AGI increase.

Requirements: (1) Age 70½+ when distribution made (not just turning 70½ that year), (2) Traditional/Roth IRA only (not 401k, SEP, SIMPLE unless rolled to IRA first), (3) Direct transfer IRA custodian → charity (cannot withdraw then donate), (4) Qualified charity 501(c)3 public charity (not DAF, private foundation, CRT).

Limits: $105,000/year per person (2024+, indexed for inflation).

Married filing jointly: $210k combined if both 70½+.

No carryforward—unused limit expires Dec 31.

QCD counts toward RMD but does NOT generate charitable deduction (excluded from income, not deduction).

YES—this is the primary benefit. 2025 standard deduction $15,000 single / $30,000 married means most seniors don't itemize.

QCD gives charitable benefit without itemizing.

Example: Age 72, $80k income, $29k standard deduction, donate $20k.

Regular donation: zero benefit (don't itemize, deduction wasted).

QCD $20k: income reduced to $60k, standard deduction still $29k = taxable income $31k vs $51k.

Tax savings: $4,800 (24% × $20k).

QCD effectively "stacks" on standard deduction vs regular donation requires itemizing >$29k.

IRMAA uses MAGI from 2 years prior. 2027 premiums based on 2025 MAGI.

IRMAA Tier 1 starts $103k single/$206k married = extra $839/year Part B + $155/year Part D = $994/year.

QCD excluded from MAGI.

Example: 2025 income $95k, $30k RMD = $125k MAGI → Tier 2 IRMAA $2,498/year (2027).

QCD $20k of RMD: $105k MAGI → Tier 1 $994/year.

Savings: $1,504/year IRMAA + $4,800 income tax (24%) = $6,304 total vs regular $20k donation (no itemizing).

401(k): NO direct QCD.

Must rollover to Traditional IRA first (no tax, takes 1-2 weeks), then QCD from IRA.

Roth IRA: YES eligible but rarely beneficial (Roth withdrawals already tax-free, QCD provides no additional tax savings vs regular withdrawal + donation).

Best QCD candidates: Traditional IRA, SEP IRA (after rollover to Traditional), SIMPLE IRA (after 2 years + rollover).

Inherited IRA: YES but different rules (beneficiary must be 70½+, not decedent).

QCD from inherited IRA counts toward annual RMD for that inherited account.

Qualified: 501(c)(3) public charities receiving direct benefit—churches, United Way, universities, hospitals, food banks.

NOT qualified: (1) Donor-advised funds (DAF)—blocked since 2006, (2) Private foundations, (3) Supporting organizations, (4) Charitable gift annuities (exception: one-time $53k CGA allowed), (5) Individuals, (6) Political orgs.

QCD must provide no goods/services in return (no gala tickets, museum memberships counted).

Charity must acknowledge receipt (written confirmation within IRS timeframe).

Tip: confirm charity 501(c)(3) status via IRS Tax Exempt Organization Search before QCD.