A Special Opportunity for Those 70 ½ Years and Older: IRA Qualified Charitable Distributions (QCDs)
You can give any amount (up to an individual maximum of $111,000 for the 2026 tax year) from your Individual Retirement Account (IRA) directly to a qualified charity, such as the CDC Foundation, without having to pay income taxes on the money. This popular gift option is commonly called a Qualified Charitable Distribution (QCD), but you may also see it referred to as an IRA Charitable Rollover.
In addition, these distributions may help satisfy a donor’s required minimum distribution (RMD) for the year. Because the QCD offers an exclusion from taxable income rather than a deduction, this strategy is not limited to taxpayers who itemize their deductions. As a result, it may be used by non-itemizing donors who do not ordinarily receive any tax benefit for their charitable gifts.
To benefit from this gift opportunity, the following qualifications (among others) must be met:
- The donor must be age 70 ½ or older at the time of transfer.
- The 2026 annual limit for QCDs is $111,000 per individual, or $222,000 for married couples filing jointly. This limit is indexed for inflation starting in 2024, with no minimum amount required.
- The gift must be transferred directly from the IRA account by the IRA administrator to the CDC Foundation. Donors with check-writing ability for their IRAs may use this feature to complete their gift.
Required Minimum Distributions (RMDs)
Required Minimum Distributions (RMDs) are minimum amounts that IRA and retirement plan account owners generally must withdraw annually. The SECURE Act 2.0 increased the RMD age to 73 for individuals who turn age 72 after December 31, 2022, and it will increase again to age 75 beginning in 2033 for certain younger taxpayers.
While IRA owners may still make tax-free Qualified Charitable Distributions (QCDs) beginning at age 70½, those distributions will only satisfy an RMD once the individual reaches their applicable RMD age. For most current retirees, that age is now 73.
Why Consider This Gift?
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- Beginning in the year you turn 73, you can use your gift to satisfy all or part of your required minimum distribution (RMD).
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- Since the gift does not count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
You can use tax-free IRA QCDs to make an outright charitable gift
- Making an unrestricted gift to the CDC Foundation
- To honor or recognize a friend or loved one
- Making a restricted gift to an existing CDC Foundation Named or Endowed Fund
Tip
It is important to let us know of your gift because many retirement plan administrators assume no obligation to notify a charity of your designation. The administrator also will not monitor whether your gift designations are followed. We would love to talk to you about your intentions to ensure that they are followed. Thank you for your generosity.
At Any Age
No matter your age, you can designate the CDC Foundation as the beneficiary of all or a percentage of your IRA and it will pass to us tax-free after your lifetime. The process is simple and just requires you to contact your IRA administrator for a change-of-beneficiary form or download a form from your provider’s website.
Request My Qualified Charitable Distribution Forms
Request a QCD Tax Acknowledgement Letter
I have already made a Qualified Charitable Distribution gift to the CDC Foundation, and I need a tax acknowledgement letter.
If you have additional questions, please contact:
Sean Allen
Senior Advancement Officer
600 Peachtree Street NE, Suite 1000
Atlanta, GA 30308
Phone: 404.476.0205
Email