How Qualified Charitable Distributions Can Help Manage Your Tax Burden

Generally, distributions from a traditional Individual Retirement Account are taxable in the year the account owner receives them. However, a qualified charitable distribution (QCD) is one exception to this rule.

A QCD is a nontaxable distribution made directly by the trustee of an IRA to organizations that are eligible to receive tax-deductible contributions. Of course, the main benefit of giving to a charitable organization is making a difference. Yet, some tax benefits reward philanthropy. Making a QCD can help manage your taxable income while supporting qualifying charitable organizations.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹⁰

Footnotes and Sources

10. ^{IRS.gov, May 29, 2025}