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Do you give to charity each year and hold a traditional IRA? After age 70½, the IRS lets you send money from an IRA directly to a qualified charity. Learn how a qualified charitable distribution works, how it can count toward required distributions, and the paperwork it needs.
How a qualified charitable distribution works, and why the details matter
Could your IRA be part of how you give this year?
For many people 70½ or older, it can. The IRS lets you send money from a traditional IRA straight to a qualified charity. This is called a qualified charitable distribution, or QCD.
If you already give every year, a QCD may simply be a different route for the same generosity. It comes with its own rules and its own paperwork, so it’s worth understanding before you use it.
A QCD is money that the trustee of your IRA pays directly to a charity. It never passes through your hands. According to the IRS, a QCD is generally not taxable, up to a yearly limit.
The IRS adjusts that limit for inflation each year. If you file a joint return, your spouse can also make a QCD, up to the same limit.
Many retirees keep giving to the causes they’ve supported for decades, such as a place of worship or a local food bank. A QCD lets that giving come from savings you built over a working life. Some couples make their gifts each fall, so the charities they care about have the money before the year ends.
It also connects to the money the IRS requires you to take from a traditional IRA later in retirement. That yearly amount is called a required minimum distribution. The IRS says a QCD can count toward it, in part or in full.
The two ages are different. Under IRS rules for 2026, you can make a QCD from age 70½. That’s a few years before required distributions begin.
Some people start giving this way early, and others wait until required distributions start.
The IRS sets a few conditions. First, you must be at least 70½ on the day the distribution is made. Second, not every type of IRA qualifies.
Third, the charity must be one that can receive tax-deductible gifts. Federal law leaves out donor-advised funds.
Your favorite local charity may well qualify. Still, it’s wise to confirm that before the money moves.
Taking money out of your IRA and then writing a check isn’t the same as a QCD. A regular withdrawal from a traditional IRA is generally taxable in the year you receive it. Whether you can then deduct the gift depends on how you file.
With a QCD, the amount that would otherwise be taxable is generally left out of your income. In return, you can’t also claim that amount as a charitable deduction.
Which route fits depends on your whole tax picture, including your other income and whether you itemize.
The IRS asks for the same written acknowledgment from the charity that you’d need to deduct a gift. Keep that letter or receipt with your tax records for the year. A short list of each charity, the date, and the amount makes tax season easier.
Your IRA custodian reports the distribution for the year it’s made. On your tax return, the QCD part is shown as not taxable. Your tax professional can make sure it’s reported correctly.
A QCD works best when it fits alongside your income needs, your taxes, and the legacy you hope to leave. At Strong Valley Wealth & Pension, we believe that "Making the right near-term decisions comes from having clarity about long-term goals."
Tax rules and limits can change, and every family’s situation is different. Please talk with your own tax or legal professional about the specifics before you make a distribution. We coordinate with your CPA and attorney so your giving and your plan work together.
If you’d like to talk through how giving fits within your plan, a Strong Valley advisor would be glad to help. You’re welcome to schedule a No-Obligation Review.
This article is for informational purposes only and is not intended as tax, legal, or investment advice. It may not apply to your situation; please work with a professional advisor before acting.
