Qualified charitable distributions (QCDs) let traditional IRA owners age 70½ and older make tax-free distributions directly to eligible charities. QCDs also can count toward required minimum distributions (RMDs). Because QCDs don’t increase reportable income, they can reduce or eliminate the risk that RMDs will trigger income-based reductions of various tax breaks. For example, the $6,000 “senior” deduction is subject to income-based phaseouts. So is the auto loan interest deduction. With the 2026 QCD limit of $111,000 per person, QCDs can be a tax-smart way for seniors to satisfy their RMDs this year. Contact us to learn more.
