Tax efficient Charitable Giving for Seniors.

Qualified Charitable Distributions (QCDs) offer a tax-efficient way for individuals aged 70½ and older to donate to charity directly from their Individual Retirement Accounts (IRAs) on a tax-free basis.

This strategy allows donors to transfer up to $105,000, in 2024, to eligible 501(c)(3) organizations, excluding donor-advised funds and private foundations. QCDs can satisfy Required Minimum Distributions (RMDs) for those 73 and older, potentially lowering taxable income and associated tax burdens.

Unlike traditional charitable deductions, QCDs don't require itemization, making them particularly advantageous given recent tax law changes. To qualify, distributions must be made directly from the IRA custodian to the charity, ensuring a seamless and tax-efficient giving process.