Qualified Charitable Distributions (QCDs)

Qualified Charitable Distributions (QCDs) are a powerful giving tool—but they’re only available to a specific group. Here’s who can use them:

✅ Who Can Make a QCD

Individuals aged 70½ or older
You must be at least 70 1⁄2 at the time of the distribution—not just during the calendar year.

Owners of eligible IRA accounts
QCDs can be made from:

• Traditional IRAs
• Inherited IRAs
• Inactive SEP or SIMPLE IRAs (meaning you’re no longer contributing)

💸 Annual Limits

• Up to $100,000 per person per year can be donated tax-free (indexed to $105,000 in 2024 and $108,000 in 2025)
• Married couples can each donate up to the individual limit from their own IRAs

🎯 Why It’s Useful

• Counts toward Required Minimum Distributions (RMDs) for those aged 73+
• Reduces taxable income without requiring itemized deductions
• Helps avoid higher Medicare premiums or taxes on Social Security benefits

💡 Example: Tax Savings Through a QCD

Meet Carol, age 75.
Carol has a traditional IRA and is required to take a Required Minimum Distribution (RMD) of $50,000 this year. Carol doesn’t need all that income and wants to support a nonprofit like YASU.

Instead of taking the full RMD and paying taxes on it, Carol decides to make a $25,000 QCD directly from her IRA to YASU.

📊 Tax Impact Comparison

By using a QCD, Carol reduces her taxable income by $25,000, avoids paying taxes on that amount, and still satisfies part of her RMD. She also keeps her adjusted gross income lower, which can help reduce taxes on Social Security and avoid Medicare surcharges.

Interested in learning more about planned giving or designating YASU as the beneficiary of your next gift? Please contact Derek Allinder, Director of Development, by email [derek@yasurvivors.org] or by phone [(724) 809-8312].