Qualified Charitable Contribution prior to RMD

[SensibleandHourly]

Hello, 

Just making sure that clients prior to RMD age can still benefit from QCD from their retirement accounts? 

Thank you! 

[abctax55 · Accepted solution]

IR-2023-215, Nov. 16, 2023

WASHINGTON —The Internal Revenue Service today reminded individual retirement arrangement (IRA) owners age 70½ or over that they can transfer up to $100,000 to charity tax-free each year.

These transfers, known as qualified charitable distributions or QCDs, offer eligible older Americans a great way to easily give to charity before the end of the year. And, for those who are at least 73 years old, QCDs count toward the IRA owner's required minimum distribution (RMD) for the year.

[Terry53029]

Just want to add, 

QCDs must be made directly by the trustee of the IRA to the charity. An IRA distribution, such as an electronic payment made directly to the IRA owner, does not count as a QCD. Likewise, a check made payable to the IRA owner is not a QCD.

Each year, an IRA owner age 70½ or over when the distribution is made can exclude from gross income up to $100,000 of these QCDs. For a married couple, if both spouses are age 70½ or over when the distributions are made and both have IRAs, each spouse can exclude up to $100,000 for a total of up to $200,000 per year.

The QCD option is available regardless of whether an eligible IRA owner itemizes deductions on Schedule A. Transferred amounts are not taxable, and no deduction is available for the transfer.

[jeffmcpa2010]

And don't forget that the QCD limit is indexed for inflation..

Qualified Charitable Distributions. The total amount of QCDs that you can exclude from your gross income increased to $108,000 in 2025, up from $105,000 in 2024.

[SensibleandHourly]

Thank you. So 70 1/2 rather than 73, but my clients aren't there yet regardless. 

[SensibleandHourly]

Thank you for these details!

[SensibleandHourly]

Thank you, Jeff, I hadn't considered that the limit was indexed for inflation!!