The Mission Match: QCD / RMD

RMDs are mandatory withdrawals from tax-deferred retirement accounts. The IRS requires this to ensure that retirement savings aren’t left untouched indefinitely, potentially delaying tax payments.

You generally must start taking RMDs in the year you turn 73, and they continue annually thereafter. For those born in 1960 or later, this age will increase to 75.

A Qualified Charitable Distribution is a tax-free transfer of funds from your IRA account to a qualified charity.

You must be 70 1/2 or older to be eligible.

QCDs are not included in your taxable income and can count towards your RMD. The full amount donated goes directly to the charitable organization.

Quite a bit! A QCD can count toward an RMD. Everyone must start taking RMDs from their qualified retirement plans, when they reach the age of 73. RMDs are taxable income. The Qualified Charitable Distribution, by contrast, is a distribution directly from certain types of retirement plans (such as IRAs) to certain types of charities. A QCD can count toward the taxpayer’s RMD for that year. And because the QCD goes directly to charity, the taxpayer is not taxed on that distribution.

While donor-advised funds are not eligible recipients of QCDs, other types of funds at the Community Foundation can receive them. These funds include unrestricted funds, field-of-interest funds, designated funds, and endowment funds established by nonprofit organizations. Contact us today to get your QCD or RMD started!

QCDs can be done at any time during the calendar. It is suggested to do QCDs early to avoid mistakenly taking a taxable distribution that cannot be retroactively offset with a future QCD.

The 2025 QCD limit is $108,000. The Required Minimum Distribution is calculated using a formula determined by the IRS based on the balance of your retirement account and your age.