1. What is a QCD? 

A taxable distribution from a Traditional IRA or a Roth IRA. The IRA must be owned by an individual who is age 70 ½ or over, and the QCD is paid directly from the IRA to a qualified charity. 

2. Amount of QCD? 

Individuals can donate up to $100,000 per year directly from a Traditional IRA or a Roth IRA to qualified charities. 

3. Benefit of QCD. 

QCD’s can be used to satisfy required minimum distributions from an IRA without having the distribution included in their income. 

4. Distribution Limits. 

● $100,000 limit per person per year. 

● QCD must be transferred to the charity no later than December 31 of the current tax year. 

● Must be a direct IRA distribution from the IRA Custodian or Trustee to a qualified charity. 

● Only applies to Traditional IRA and Roth IRA. This excludes SEP and Simple IRA’s. 

5. Benefits of QCD. 

● What if I give larger gifts? 

Deduction Limits do not apply to QCD’s, therefore the QCD can be made in addition to other charitable contributions (which may be limited by the annual maximum deductible percentage of income, or phase-outs of itemized deductions. 

● What if I do not itemize deductions. 

If you do not itemize deductions, and QCD’s are used as the funding source for donations, the donor will receive tax benefits (when otherwise there would not have been any, due to the use of the standard deduction). 

● What if I pay taxes on a portion of my Social Security Benefits? The income for determining the tax of Social Security benefits is lower than if the IRA holder had taken the Required Minimum Distribution, potentially reducing this tax.

● What if my income subjects me to paying tax on Net Investment Income, or phase-out of personal exemption or itemized deduction? 

A Qualified Charitable Distribution made as a substitute of a Required minimum Distribution, would result in lower Adjusted Gross Income for the IRA holder. This may lessen the effect of this tax, or a phase out.