Posted in Triplett & Carothers on February 24, 2026

Americans are a charitable group, with donations amounting to over $592 billion in 2024 alone. If you are 70 ½ , you may want to consider transferring your annual required minimum distribution from your IRA into a qualified charitable distribution. In addition to doing something good to help others, there is a tax advantage for you.

According to the IRS, qualified individuals can donate up to $108,000 directly into one or more charitable organizations from their taxable IRA account. The amount increases to $216,000 for married couples. The money never passes into the hands of the IRA owner — it is deposited either electronically or through a check into the qualified charity.

Many times, an RMD will push the taxpayer into a higher tax bracket. Rolling over an RMD into a QCD has a tax advantage for the donor. QCDs reduce the balance of the IRA, which may reduce the amount of the RMD for future years. Note that QCDs are not counted toward the maximum amounts deductible for those who itemize their donations on their taxes.

If you do itemize your charitable giving, the $108,000 can be above the limits. Donating in this way gives you more of a reason to use your RMD instead of using cash or some other assets. The value of charitable donations that can be deducted from a tax return usually ranges from 20% to 60% of the donor’s adjusted gross income. QCDs allow the donor to make larger donations, as they are not limited by their AGI.

Read the fine print

Not all charities are eligible to receive a QCD. It is important that you check to make sure this is the case before attempting to transfer the funds. The list of eligible organizations is expansive. The tax code is very clear as to what organizations are qualified to receive a QCD. For example, donor-advised fund sponsors, private foundations and supporting organizations cannot receive QCDs.

Typically, nonprofit groups that are religious, educational, scientific or literary in nature have been granted tax-exempt status by the IRS. Note that organizations that are involved in political advocacy are not recognized as charitable. Charitable organizations such as American Red Cross, United Way, CARE, and Boy Scouts and Girl Scouts of America also fall into this tax-exempt category. An IRS-sanctioned charitable group is designated a 501(c)(3) organization. If the organization violates any of the IRS rules regarding how it can operate, it will lose its tax-free status.

It is advisable that you speak with a tax professional or a financial adviser who can take you through the process and to discuss what the financial implications are for your situation. Qualified charitable distributions help you support your favorite charities via substantial donations.

Reach out to Roz Carothers and her team at Triplett & Carothers to learn more.

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