Short blog today – everyone’s favorite! I was Today Years Old when I learned about these factoids related to Qualified Charitable Distributions (QCDs) from IRAs.
As a reminder, QCDs allow people aged 70 ½ and older to gift money from their tax-deferred IRAs directly to charity (501(c)(3)s only please – not your charity-case loser great-nephew) and avoid paying any income tax on the distribution. This is the most tax-efficient way to give money to a non-profit.
You may have already known that (I’ve written about it before), but the real new-to-me news is this:
- The QCD limit $108,000 per person in 2025.* I thought it was $100,000. And it’s per PERSON, so a married couple could gift $216,000 from their IRAs this year.
Side note, you don’t have to give that much. If your RMD is $20,000 but you only want to give $5,000 to charity, that works! Conversely if your RMD is $20,000 but you want to gift $30,000, you can do that, too.
- The timing of your QCD in relation to taking distributions to yourself during the year is important. Do the QCD before you take out any money to yourself.
For example, if your RMD is $30,000 and you take that out before you do a QCD of, say, $5,000, the gift will not count as part of the RMD required amount.*
Another point on timing: You only have to be 70 ½ to use the QCD provision, even if your required minimum distribution date starts later due to recent tax law changes. So, if you turn 70 ½ June 1, 2025, you can do a QCD after that date, even if your RMD doesn’t start until age 73.
See, we all learn a little bit about personal finance every day. Even your financial advisor!
Source: The Megabill Boosts A Tax Break for Seniors by Laura Saunders; Wall Street Journal, September 6-7, 2025
