After TaxTax Playbook

Tax Playbook · Giving, strategically

Donate your RMD (QCDs)

Once you're 70½, you can send up to $111,000 a year straight from your IRA to a charity. The money is never taxed, and it still counts toward your required minimum distribution. For example, if your RMD is $20,000 and you send that $20,000 to a charity, you've met your RMD and owe zero tax on it. The money must go straight from your IRA to the charity — not to you first, and not into a donor-advised fund.

Good for: Anyone 70½ or older with an IRA who gives to charity.

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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.