Qualified Charitable Distribution (QCD)

Qualified Charitable Distribution (QCD) refers to a direct transfer of funds from an individual's Individual Retirement Account (IRA) to a qualified charitable organization. Individuals aged 70½ or older can use QCDs to satisfy all or part of their required minimum distribution (RMD) for the year, up to an annual limit of $100,000 per taxpayer. QCDs are excluded from taxable income, offering a tax-efficient way to support philanthropic goals without increasing adjusted gross income. For family offices, QCDs are a strategic tool to align charitable giving with tax planning, particularly for high-net-worth families seeking to optimize their philanthropic impact while managing tax liabilities.