Most retirees that have spent a lifetime accumulating savings in tax-deferred IRA accounts are well aware that the success of the stock market likely means one thing – higher taxes due to increased RMD’s at age 73.

If charitable giving is part of your financial plan (regardless of the amount), then a qualified charitable distribution (QCD) may provide an option to further your philanthropic goals and reduce the tax consequence from your RMD.

What is a QCD?

QCD’s allow individuals age 70½ or older to make tax-free donations directly to a charity from their IRA, allowing you to satisfy all or part of your annual RMD. For the tax year 2025, you can donate up to $108,000 individually using a QCD.

You do not necessarily want to give away money just to get a tax break, but if philanthropy is already part of your financial plan, a QCD can be a great way to optimize the tax benefits of giving. Your financial advisor and tax professional can help make sure your giving strategy aligns with your retirement goals as well as any changes to tax rules. 

Written by Kyle Overturf, 2025 GGICF Board Chair