How Do I Make a Qualified Charitable Distribution From My IRA?

A Qualified Charitable Distribution (QCD) is a withdrawal from an individual retirement arrangement (IRA) sent directly to a charitable organization. The amount distributed is excluded from the IRA owner’s adjusted gross income (AGI) for the year. This provides a tax advantage, especially for individuals who do not itemize deductions, and can also satisfy some or all of an individual’s Required Minimum Distribution (RMD) for the year.

QCD Eligibility and Rules

The IRA owner must be at least 70½ years of age on the date of the transfer. This age is distinct from the RMD age of 73. Funds must come from an eligible IRA, such as a Traditional, Rollover, or Inherited IRA. SEP and SIMPLE IRAs may also be eligible under certain conditions, such as when employer contributions have ceased or after a two-year participation period, respectively.

The receiving organization must be a qualified 501(c)(3) charity. Before initiating a transfer, the IRA owner should verify the charity’s status. Private foundations, donor-advised funds, and supporting organizations are not eligible to receive QCDs. The IRA owner cannot receive any benefit in return for the contribution, as this would disqualify the transaction.

For 2025, the annual QCD limit is $108,000 per person, an amount indexed for inflation. A married couple can contribute up to $216,000 in 2025 if they each have their own IRA and both meet the age requirement. A QCD will count towards satisfying the RMD for that year, up to the total amount of the distribution.

A new provision allows for a one-time distribution of up to $54,000 in 2025 to a split-interest entity. This special QCD can fund a Charitable Remainder Unitrust (CRUT), a Charitable Remainder Annuity Trust (CRAT), or a Charitable Gift Annuity (CGA). This is a lifetime election and counts toward the annual QCD limit for the year it is made.

Executing the QCD Transaction

The transfer must be made directly from the IRA to the charity. One method is to instruct the IRA custodian, the financial institution holding the account, to mail a check to the organization on the owner’s behalf. To do this, the owner must provide the charity’s legal name, address, and the distribution amount. Alternatively, some custodians may send a check payable to the charity to the IRA owner, who is then responsible for forwarding it.

For IRAs with check-writing privileges, the account holder can write a check from the IRA directly to the charity. In all cases, the check must be payable to the charity, not the IRA owner, to maintain its qualified status. The transaction is complete for the tax year on the date the check clears the account, so it should be done before December 31.

Tax Reporting and Recordkeeping

After a QCD is made, the IRA custodian will issue Form 1099-R. This form reports the total distribution from the IRA for the year but does not identify the portion that was a QCD. The withdrawal will appear as a normal, potentially taxable distribution.

The taxpayer must correctly report the QCD on their federal income tax return. The total distribution from Form 1099-R is entered on the line for IRA distributions. On the line for the taxable amount, the taxpayer enters zero if the entire distribution was a QCD, or the taxable portion if it was not. The taxpayer should also write “QCD” next to this line to note the adjustment.

The taxpayer must obtain a written acknowledgment from the charity to serve as proof of the donation. This document must include:

• The name of the charity
• The date of the contribution
• The amount of the contribution
• A statement confirming no goods or services were provided in exchange for the donation