As tax laws shift under the One Big Beautiful Bill Act (OBBBA), Qualified Charitable Distributions (QCDs) remain one of the most effective strategies for clients age 70½ and older to give wisely while managing taxable income.
Why QCDs matter
IRA assets—totaling nearly $18 trillion nationwide—are among the most heavily
taxed upon withdrawal and inheritance. QCDs allow clients to give up to
$108,000 (per taxpayer in 2025) directly from an IRA to an eligible charity,
reducing adjusted gross income instead of relying on an itemized deduction.
Key advantages
- QCDs count toward Required Minimum Distributions (RMDs) without increasing taxable income.
- Lower AGI can reduce Medicare surcharges (IRMAA) and preserve deductions that phase out at higher income levels.
- Beginning in 2026, the new 0.5% AGI floor and 35% deduction cap will limit the value of itemized charitable deductions, making QCDs even more valuable.
How we help
While donor advised funds can’t receive QCDs, clients often pair them with
other fund types that can—such as field-of-interest, designated, or
unrestricted funds—to balance flexibility and tax efficiency.
Now is the time to revisit these strategies. Together, we can help your clients reduce taxes, simplify giving, and support the community they love.