What’s a QCD?
A Qualified Charitable Distribution (QCD) is a tax-smart giving strategy for those aged 70½ or older. It allows you to transfer funds directly from your IRA to qualified charities without incurring taxable income.
Why It’s a Win—for You and for Charity
Lowers your taxable income, helping reduce taxes on Social Security or Medicare premiums.
Counts toward Required Minimum Distributions (RMDs) once you're eligible, without increasing your taxable income.
Supports causes you care about in a meaningful, efficient way.
Quick Rules to Keep in MindAge Eligibility
You must be 70½ or older to make a QCD.
Annual Limit - Up to $108,000 per individual in 2025—your spouse can have their own IRA for additional QCDs.
Qualified Charities Only - Must go directly to 501(c)(3) organizations—not donor-advised funds or private foundations.
Direct Transfer Required - Funds must go directly from your IRA custodian to the charity—no detours.
Deadline - The transfer must be completed by December 31 of the tax year you want it to count.
Reporting - Report the distribution on your tax return as $0 taxable; the charity should provide a receipt.
Your Next Steps
Plan early, especially around year-end—timing matters.
Confirm the charity qualifies before sending.
Coordinate with your IRA custodian to ensure it’s marked as a QCD.
Keep all records, including the charitable receipt.
Final Thought
At Dreyer Wealth Management, we believe giving should feel good—and work smart. QCDs let you reduce taxes, fulfill RMDs, and support your community with clarity and confidence.