Qualified Charitable Distribution (QCD)

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A Qualified Charitable Distribution (QCD) is a distribution made directly by the trustee of your IRA (other than an SEP or SIMPLE IRA) to certain qualified organizations or split-interest entities.

The requirements for a QCD are:

• The distribution can't be from an active SEP or SIMPLE IRA. Active means when the employer has made a contribution in the current tax year (2025).
• The distribution must be made directly from your IRA account to the charity or split-interest entity.
• You must be at least 70 1/2 years old when the distribution was made.
• You must have a receipt for the donation to the qualified organization. Keep this with your records.

If you make a QCD, the amount is excluded from your income up to $108,000. If you file jointly, your spouse could also make a QCD up to $108,000. If you made a one-time QCD to a split-interest entity (not common), this counts toward the maximum $108,000.

A QCD will count towards your required minimum distribution (RMD).

Do not enter the amount of your QCD as a charitable Itemized Deduction since the amount will already be excluded from your taxable income.

If the distribution doesn't count as a QCD, or if you just take a regular IRA distribution and then donate it to charity, you can deduct the charitable contribution as an Itemized Deduction.