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Qualified Charitable Distribution 

Qualified Charitable Distribution 

A Qualified Charitable Distribution (QCD) lets traditional (non-Roth) IRA owners 70½ and older donate up to $108,000 ($111,000 for 2026) tax-free directly from their IRA to CMC, satisfying Required Minimum Distributions (RMDs) and lowering taxable income.   
A Qualified Charitable Distribution (QCD) lets traditional (non-Roth) IRA owners 70½ and older donate up to $108,000 (for 2025) and $111,000 (for 2026) tax-free directly from their IRA to CMC, satisfying Required Minimum Distributions (RMDs) and lowering taxable income.   

Key Requirements & Benefits

Key Requirements & Benefits 

  • Age: Must be 70½ or older.
  • Source: Funds must come directly from an IRA (not SEP/SIMPLE).
  • Recipient: Must be a qualified 501(c)(3) public charity like CMC
  • Direct Transfer: Trustee-to-charity transfer; you can't receive the money first.
  • Tax Benefit: The amount isn't taxed as income and doesn't require itemizing deductions.
  • RMD Fulfillment: Counts toward your annual RMD, reducing the taxable amount you withdraw.
  • Annual Limit: $108,000 per individual in 2025; $111,000 in 2026. 
  • Age: Must be 70½ or older.
  • Source: Funds must come directly from an IRA (not SEP/SIMPLE).
  • Recipient: Must be a qualified 501(c)(3) public charity like CMC
  • Direct Transfer: Trustee-to-charity transfer; you can't receive the money first.
  • Tax Benefit: The amount isn't taxed as income and doesn't require itemizing deductions.
  • RMD Fulfillment: Counts toward your annual RMD, reducing the taxable amount you withdraw.
  • Annual Limit: $108,000 per individual in 2025; $111,000 in 2026. 

How It Works 

How It Works 

  1. Contact your IRA custodian (e.g., Fidelity, Vanguard) and request a QCD.
  2. Specify the charitable organization as “Calvary Memorial Church” and the amount.
  3. The custodian sends the funds directly to CMC.
  4. The distribution is reported on Form 1099-R, but you note it as a non-taxable QCD to exclude it from income. 

Why Use a QCD?

  • Lower Taxable Income: Avoids pushing you into higher tax brackets.
  • Reduces Medicare Premiums: Lowers Adjusted Gross Income (AGI), potentially lowering Medicare Part B/D premiums.
  • Strategic Giving: Efficiently supports favorite charities while meeting mandatory withdrawals.