Did you know if you’re in your 70’s, you can give money to your favorite charities tax-free directly from your IRA?

Paul Brown |

For many retirees, continuing to give generously to the charities and causes they care about is deeply meaningful. However, where you give from can make a big difference in how far your generosity goes. 

If you’re at least 70 ½ years old, you can take advantage of an often overlooked strategy called a Qualified Charitable Distribution (QCD). Introduced in 2006 through the Pension Protection Act, this allows you to make a tax-free gift directly from your IRA to any qualified charity. 

Why It Matters

  • Tax savings: The amount you give through a QCD is excluded from your taxable income.
  • RMD satisfaction: Your gift can count toward your Required Minimum Distribution (RMD), up to $108,000 in 2025.
  • Medicare benefits: By lowering your Adjusted Gross Income (AGI), a QCD can help reduce or eliminate premium surcharges on Medicare Parts B and D.

Timing Is Everything

If you intend to give all or part of your RMD to charity, make sure your first distribution of the year is directed to the charity. The IRS counts the first dollars withdrawn from your IRA as satisfying your RMD—so waiting until year-end to give could mean missing the opportunity for your gift to qualify as part of your RMD.

A Few Important Details

  • The gift must go directly from your IRA to a qualified charity (not through your checking account).
  • QCDs must be completed by December 31 each year—no extensions.
  • They can only come from IRAs or inherited IRAs, not 401ks or other qualified retirement plans.
  • Gifts are made with pre-tax dollars, and you cannot also claim a tax deduction.
  • You’ll receive a 1099-R for the transaction, so be sure your tax preparer records it properly as a QCD.

Give Generously—and Wisely

This tax-smart giving strategy can allow you to continue being generous in retirement, satisfying your RMD while not having to give with after tax dollars. 

If you’d like to explore how this and other strategies can fit into your current retirement plan, we’d love to help. 

Take your next step here: https://www.connected-wealth.com/next-steps.