By Jody Dilday, Philanthropic Advisor
With new tax laws swirling, many advisors are asking: “Did the rules change for Qualified Charitable Distributions (QCDs)?”
Here are four key reminders:
1. Rules are unchanged.
Taxpayers 70½+ can still direct up to $108,000 from an IRA to a qualified charity, including some funds at the Community Foundation.
2. QCDs are more valuable after OBBBA.
Unlike itemized deductions, QCDs bypass the new 0.5% floor (coming in 2026) and the 35% cap for high-income taxpayers.
3. Donor advised funds don’t qualify.
But other Community Foundation funds—field of interest, designated, unrestricted funds are all eligible. We can help pair strategies for clients with both DAFs and QCD-friendly funds.
4. IRAs make excellent legacy gifts.
They avoid both income and estate tax when left to charity.
Contact us to explore QCD strategies that maximize tax savings and community impact.
