Mike Crews | Apr 16 2026 17:16

If you're already giving to your church or other causes you care deeply about, you're already making a meaningful impact. But if you're still writing checks from your personal account, you may be missing an opportunity to give in a more tax-efficient way. For those approaching or already in retirement, there’s a powerful strategy that can help you maximize both your charitable giving and your financial plan: the Qualified Charitable Distribution (QCD).

A QCD allows you to donate directly from your IRA to a qualified charity—reducing your taxable income and helping your retirement dollars go even further. And since most retirees no longer itemize deductions and instead take the standard deduction, QCDs can provide meaningful tax benefits that traditional charitable contributions no longer offer.

What Is a Qualified Charitable Distribution (QCD)?

A Qualified Charitable Distribution is a direct transfer of funds from your IRA to a qualified charity. Even better, QCDs count toward your Required Minimum Distribution (RMD), but unlike a regular RMD withdrawal, the amount given through a QCD is not subject to income tax.

This makes QCDs an especially valuable tool for retirees who want to support meaningful causes without increasing their taxable income.

Why Use a QCD?

Tax Benefits: If you’re required to take an RMD but don’t need the funds for personal expenses, a QCD allows you to send those dollars directly to charity—avoiding income tax on the distribution.

Support Causes You Care About: Since you’re planning to give anyway, why not do it in the most tax-efficient way? A QCD allows your generosity to stretch further while benefiting your financial picture.

Lower Your Taxable Income: By using a QCD to satisfy your RMD, you may reduce your overall taxable income. This could help lower Medicare premiums, reduce taxes on Social Security benefits, and minimize other tax impacts in retirement.

Who Can Benefit From QCDs?

You may be eligible to use a QCD if you:

  • Are age 70½ or older (QCD age remains 70½ even though RMDs now begin at age 73)
  • Have funds in a traditional IRA
  • Wish to contribute directly to a qualified charity such as a church, educational institution, or other 501(c)(3) nonprofit

How to Make a QCD

Here’s how to take advantage of this strategy:

  • Contact Your Financial Advisor or IRA Custodian: Let them know you’d like to make a Qualified Charitable Distribution. The transfer must go directly from your IRA to the charity.
  • Choose a Qualified Charity: The organization must be a recognized 501(c)(3). This can be a local nonprofit or a national charity—any cause you’re passionate about.
  • Follow the Contribution Rules: For 2026, individuals can donate up to $111,000 per year via QCDs. This amount counts toward your RMD and is excluded from taxable income.

Important Considerations

  • Roth IRAs do not require RMDs and are not eligible for QCDs.
  • QCDs must come from IRAs—not employer-sponsored plans like 401(k)s.
  • You can’t “double dip.” QCDs reduce taxable income, so you can’t also claim the gift as an itemized deduction.

Ready to Explore QCDs?

If you’re passionate about charitable giving and want to maximize your impact while minimizing taxes, a Qualified Charitable Distribution may be the ideal solution.

If you’re unsure how QCDs fit into your broader retirement plan, schedule a Discovery Visit with us. At Forum Advisory Services, we’ll help you integrate charitable giving into your financial strategy so it aligns with both your values and long-term goals.