A Qualified Charitable Distributions (QCD) is a tax-free direct transfer of funds from your IRA to a qualified charitable organization other than a Donor-Advised Fund.  You must be over the age of 70 1/2 at the time of the QCD transaction. QCD’s are a great way to claim a federal tax benefit for charitable gifts even when claiming the Standard Deduction.

For individuals subject to the Required Minimum Distribution (RMD) rules on qualified retirement accounts, a QCD can reduce the taxability of the RMD. 

Account Types

The account types that are eligible for QCDs include:

  • Traditional and Inherited IRAs
  • SEP IRA (inactive plans only)
  • Simple IRA (inactive plans only)


Distribution Limit

The maximum annual distribution amount that can qualify for QCD treatment is $100,000. This limit would apply to the sum of QCDs made to one or more charities in a calendar year. If you’re a joint tax filer, both you and your spouse can make up to $100,000 in QCDs from your respective IRA.

Read more about QCDs from Schwab