If you’re age 70½ or older and have an IRA, Uncle Sam has a little annual tradition for you called a Required Minimum Distribution (RMD). In simple terms, it’s the government’s way of saying, “Time to take some money out… and pay taxes on it.” But what if you could give some of that money to a charity you love and not pay taxes on it at all? That’s exactly where Qualified Charitable Distributions—better known as QCDs—come in.
In 2026, a QCD allows you to send up to $111,000 this year directly from your IRA to a qualified charity. The best part? That money never shows up as taxable income on your return. Even better, it can count toward your RMD if you’re required to take one. It’s one of the rare situations in the tax world where you get to support your favorite church, ministry, or nonprofit and tell the IRS, “You don’t get a cut of this one.” Not bad for a few simple forms and a well-timed check.
Why does this matter? Because lower taxable income can mean fewer taxes, lower Medicare premiums, and fewer surprises on your tax return. For many retirees, QCDs are one of the cleanest, most efficient ways to give charitably while protecting their retirement income. Think of it as turning your IRA into a generosity machine—with some nice tax benefits baked in.
If you’re already giving to charities—or would like to—this is a strategy worth exploring. QCD rules can be tricky, and the timing and paperwork matter. If you’d like help seeing whether QCDs make sense for you, or if you’d like us to coordinate this with your overall tax and retirement plan, please reach out to our office at 704-708-5001 or contact us at mariaromeo@retirewitheverest.com to schedule a meeting. We’d be happy to help you give more… and pay less.
For specific tax planning advice or services, please consult a qualified tax advisor or CPA.