If you’re interested in donating to a charity that’s close to your heart, a qualified charitable distribution (QCD) may allow you to send money directly from your IRA to one or more qualified charities.
If the distribution meets all of the requirements to be considered a QCD, the amount of the distribution will not be included in your taxable income.
Who can make a qualified charitable distribution?
Any IRA owner or beneficiary who is 70 ½ or older on the date the distribution takes place is eligible to make a QCD.
How much can I donate as a qualified charitable donation?
The allowable limit for a QCD may increase each year. For 2025, the maximum amount is $108,000 ($105,000 for 2024). This amount includes all distributions from all IRAs you own. If you are married, however, and your spouse also chooses to make a QCD, they can donate up to their own individual limit.
The maximum amount of the QCD is reduced by any deductible contribution you make to a traditional IRA in the same year. You can find examples of the calculation here, and the IRS has provided a simple worksheet to help you determine your limit.
What types of IRAs can a qualified charitable distribution be made from?
QCDs can come from a traditional or Roth IRA. Additionally, QCDs can be made from a SEP or SIMPLE IRA provided that the plans are not “ongoing.” A SEP or SIMPLE IRA is considered ongoing if there are employer contributions made in the same year as the distribution that you want to be a QCD.
What are the requirements for a distribution to be considered a qualified charitable distribution?
For an IRA distribution to be considered a QCD, it must meet the following criteria:
The amount must be paid to a qualified charity.
The amount must be paid directly to the qualified charity. While the check does not need to be mailed to the charity directly from the financial institution holding the IRA, the check must be made out directly to the charity. If you deposit the distribution into your personal banking account and then write a check to the charity, it will not be considered a QCD.
The assets must otherwise be taxable. This means that non-deductible contributions to a traditional IRA or normal contributions to a Roth IRA cannot be included in a QCD. You can find more information about the distribution ordering rules for Roth IRAs here.
Will a qualified charitable distribution count toward my required minimum distribution?
Yes, any amount you take as a QCD will count toward the required minimum distribution (RMD) you must take from your IRA for that year.
If the QCD is for more than your RMD, the amount does not offset your RMD for future years. QCDs also do not offset any RMDs you may need to take from an employer-sponsored plan, such as a 401(k) or 403(b) plan.
Will I get a tax document showing my qualified charitable distribution?
If you make a QCD, you will receive a Form 1099-R showing the distribution from your IRA. However, there is no special reporting for QCDs, and other distributions you take may be included on the same form. You must claim the amount of your QCD on your tax return.
You should consult with your tax advisor if you have any questions about claiming your QCD for tax purposes.
What is a qualified charitable distribution to a “split-interest entity”?
You can make a one-time distribution to a “split-interest entity.”
For 2025, the total amount of the distribution to the split-interest entity is limited to $54,000 (53,000 for 2024). Split interest entities and the rules around their funding (including using QCDs) are complex, and you must work with your tax advisor to confirm all requirements are met.
How do I request a qualified charitable distribution from my Guideline IRA?
If you would like to make a QCD from your Guideline IRA, please reach out to a Guideline representative at ira@guideline.com. We’ll be happy to help you get the process started.
This information is general in nature and is for informational purposes only. It should not be used as a substitute for specific tax, legal, and/or financial advice that considers all relevant facts and circumstances. You are advised to consult a qualified financial adviser or tax professional before relying on the information provided herein.