IRA Charitable Donations
IRA owners can make tax-free charitable donations to qualified charities through qualified charitable distributions (QCDs). QCDs are a way to give to charity without having to itemize deductions.
Eligibility
- IRA owners must be at least 70.5 years old
- Married couples can donate up to $210,000 combined if both meet qualifications and have separate IRAs
How it works
- The IRA trustee sends the funds directly to the charity
- The donor can exclude the amount of the gift from their taxable income
- QCDs can count toward the required minimum distribution (RMD) for the year
Reporting
- The IRA trustee reports the QCD on Form 1099-R
- The donor reports the total distribution amount on line 4a of their Form 1040
- The donor subtracts the QCD and reports the remainder on line 4b of their Form 1040
- The donor writes “QCD” next to line 4b
When to contact an advisor
- Consult a tax advisor for information about specific exceptions
