Advisor Insights

An Easier Way to Make Qualified Charitable Distributions

Helen Modly, CFP, CPWA

A qualified charitable distribution is a nontaxable charitable contribution made directly from an IRA (except for an ongoing SEP or SIMPLE IRA) to a qualified charity. A qualified charity must be a 501(c)(3) organization. Private foundations, supporting organizations and donor-advised funds are not eligible charities for QCD purposes.

To be eligible to make a QCD, clients must be at least 70 1/2 and required to take minimum distributions from their IRA. They can contribute up to $100,000 per year to any combination of qualified charities. A QCD can satisfy all or part of their required minimum distribution amount for the year.