Qualified Charitable Distribution: Saving Money on Your Taxes | 2025 Tax Season

Qualified charitable distributions can save you money on your taxes. A charitable donation from your IRA diminishes income taxes on your money. 

An Opportunity for Those 70½ Years Old and Older:

    In 2024, at age 70½ or older, you have the opportunity to give any amount (up to a maximum of $105,000) from your IRA directly to a qualified charity of your choice to avoid paying income taxes. This option is often called a qualified charitable distribution (QCD). When participants turn 73, they may use their donation to satisfy part or all of the required minimum distribution. Any donation higher than $105,000 must be reported as taxable income and do NOT qualify. 

Benefits:

•  If you have required minimum distributions, your donation may satisfy part or all of your required distribution.

• Income taxes will not be associated with your donation. Your transfer does NOT generate a taxable income or deduction, you will receive benefits regardless of itemizing your deductions.

• Your donation does not generate income and may reduce your annual income level.

• The donation from your IRA may help you avoid an increase in your Medicare Premiums.