The IRS reminds IRA owners aged 70½ and older that they can make up to $105,000 in tax-free charitable donations through Qualified Charitable Distributions (QCDs) in 2024, an increase from $100,000 in previous years. For individuals aged 73 and above, QCDs also count toward Required Minimum Distributions (RMDs). To qualify, QCDs must be sent directly from the IRA trustee to a qualified charity and can be excluded from taxable income without the need to itemize deductions. Married couples with separate IRAs may donate up to $210,000 combined.
Starting this year, the QCD limit will adjust annually for inflation, rising to $108,000 in 2025. IRA owners should act soon to ensure transactions are completed by year-end and consult Form 1099-R and related IRS publications for accurate reporting. Learn more.
