Charitable Donations with QCD

To leave your Required Minimum Distributions (RMDs) to a charity, you must be 70 and a half years old or older. The Qualified Charitable Distributions (QCDs) must be made directly from your IRA to the charity, without passing through you. There is no tax deduction for the QCD since the distribution is already tax-free as it goes directly to the charity. The QCD can count towards your required minimum distribution for the year. The charity must be a qualified nonprofit educational institution or religious organization. QCDs are beneficial for individuals who want to make charitable contributions, avoid adding to their taxes through RMDs, have no beneficiaries to consider, and prefer direct donations to the charity. The maximum amount for QCDs is $105,000 per year.