If you are age 70½ or older, Qualified Charitable Distributions (QCDs) are one of the most powerful ways to give to charities—both now and in the future.
Why QCDs Work So Well
- Satisfy RMDs – Distributions count toward your required minimum distribution once you reach age 73.
- Tax-Free Treatment – The transferred amount is excluded from your taxable income.
- Bypass New Deduction Limits – QCDs are not itemized deductions, so they avoid the new OBBBA rules beginning in 2026 (the 0.5% floor and the 2/37 haircut).
- Annual Limit – Up to $100,000 per person, per year ($200,000 for couples).
- Extra Tax Savings – Lowering your AGI can also help reduce Medicare premiums and other AGI-based thresholds.
Why This Matters
As charitable deduction rules tighten in 2026, QCDs stand out as a simple, tax-smart way to support the causes you care about—without worrying about deduction limitations.
If you’re approaching or already taking RMDs, now is the time to see whether QCDs should be part of your giving plan.
If you’d like to explore whether QCDs fit into your 2025 or 2026 planning, reach out to us—one of our team members at theKFORDgroup will be happy to run the numbers with you.
