Can I Reduce My RMDs by Using a Qualified Charitable Distribution?

Yes — if you're 70½ or older, you can make a Qualified Charitable Distribution (QCD) directly from your IRA to a qualified charity of up to $105,000 per year (2024, adjusted annually for inflation). The QCD counts toward your Required Minimum Distribution (RMD) but is excluded from your taxable income — a better outcome than taking the RMD, paying tax on it, and then donating the after-tax amount. You don't need to itemize to benefit from a QCD. The distribution must go directly from the IRA to the charity; if you withdraw the money first and then donate it, it doesn't qualify as a QCD. This is one of the best tax strategies for charitably inclined retirees.