Glossary
What is a qualified charitable distribution (QCD)?
A qualified charitable distribution sends money directly from an IRA to a charity after you reach the eligible age. The amount counts toward your required minimum distribution but never appears in your taxable income — which is better than taking the money and deducting the gift.
The advantage is that it lowers your adjusted gross income rather than acting as a deduction. That matters because AGI drives how much of your Social Security is taxable and which IRMAA tier you land in.
It also works for people who take the standard deduction, who get no benefit at all from a normal charitable deduction.
The money has to move directly from the custodian to the charity. Take it yourself first and the benefit is gone.
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