If you’re 70 1/2 or older with a traditional IRA, there’s a tax-saving strategy the IRS doesn’t advertise—but we will: the Qualified Charitable Distribution (QCD).

Starting at age 73, you’re required to take minimum distributions from your traditional IRA. These RMDs count as taxable income, which can push you into a higher tax bracket, affect your Medicare premiums, or make more of your Social Security taxable.

But there’s a way around it: the Qualified Charitable Distribution. At Polaris Tax & Accounting, we help retirees across Florida use QCDs to fulfill their RMD while reducing their taxable income.

What Is a QCD?

A QCD is a direct transfer from your IRA to a qualified charity. Instead of withdrawing the money yourself, your IRA custodian sends the funds straight to the nonprofit. The amount counts toward your RMD but does not show up as taxable income.

Better still—you can use a QCD whether or not you itemize deductions.

How Much Can You Give?

In 2025, you can donate up to:

  • $108,000 per person, per year
  • $216,000 for a married couple (each spouse must use their own IRA)

You can begin making QCDs as early as age 70 1/2, even though RMDs don’t start until age 73.

What Are the Benefits?

  • ✅ Satisfies part or all of your RMD
  • ✅ Keeps your adjusted gross income lower
  • ✅ Reduces Medicare premium surcharges
  • ✅ Allows charitable giving without needing to itemize
  • ✅ Lowers the chance of taxation on Social Security

How to Do It Right

  • The funds must go directly from your IRA to the charity
  • The charity must be a 501(c)(3) public organization (no donor-advised funds)
  • Get a written acknowledgment from the charity
  • Make the QCD before taking any other IRA distributions for the year (the IRS counts the first dollars out as your RMD)
  • Inform your tax preparer so it’s reported correctly on your return

Is a QCD Right for You?

If you’re over 70 1/2, have IRA assets, and already give to charity (or want to), the QCD is one of the cleanest, most powerful tools available. It allows you to give intentionally while saving thousands in taxes—without changing your lifestyle.

📍 Polaris Tax & Accounting helps retirees in Plantation, FL and nationwide make tax-smart charitable decisions.

👉  Schedule a consultation today to see if a QCD makes sense for you this year.