IRA QCD
Ever wondered what other ways you can donate to your local charities or to The Arc of the Quad Cities Area? One of the many ways is giving a qualified charitable donation (QCD) through your IRA account!
At the age of 70 1/2 years old, you can easily have funds directly deposited from your IRA custodian to an IRS-approved charity of your choice. This works with traditional IRAs, SEP IRAs, and SIMPLE IRAs. The main benefits of this are that the donated amount is excluded from your taxable income, unlike a regular IRA withdrawal, you get the tax benefit without needing to itemize deductions, and they count towards your required minimum distribution (RMD) if you’re 73 years or older. The maximum amount per person in 2025 is $108,000, this will be increasing to $118,000 in 2026.
QCDs will not increase adjusted gross income, meaning it will help mitigate tax on Social Security or surcharges on Medicare premiums.
The timing of your IRA withdrawals matter! The “First Dollar Out” rule states that the first IRA withdrawals in a year count towards the RMD. To maximize your tax benefits, you should submit QCDs before taking any taxable RMD withdrawals. A QCD must be fully processed by the charity before December 31st to count for that year; the earlier the withdrawal means avoiding year-end delays.

Make sure to contact your IRA custodian to setup a QCD and that it is being recorded as such for tax purposes!
For more information, you can visit QC Community Foundation or contact Sarah Wright from The Arc of the Quad Cities Area at wrights@arcqca.org












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