What is a qualified charitable distribution from my IRA?

A qualified charitable distribution (QCD) lets you donate directly from your Traditional IRA to a qualified charity and exclude that amount from your taxable income. You must be at least 70½, and in 2025 you can give up to $108,000 per year this way (the limit is now inflation-adjusted). The big advantage: a QCD counts toward your required minimum distribution but never appears in your adjusted gross income, which can lower taxes on Social Security and reduce Medicare premium surcharges. It beats taking the distribution and then deducting a gift, especially since most retirees take the standard deduction. The money must go straight from your IRA custodian to the charity – you can't touch it first. For charitably inclined retirees, the QCD is one of the most tax-efficient ways to give.