Qualified Charitable Distribution (QCD).

A qualified charitable distribution is a direct transfer of up to $108,000 per year (2026 limit, indexed annually for inflation) from a traditional IRA to an eligible 501(c)(3) charity, available to IRA holders aged 70½ or older. The amount transferred counts toward the required minimum distribution for the year but is excluded from taxable income — a key advantage over taking the distribution personally and then donating it. For retirees who do not itemize deductions, QCDs are often the most tax-efficient way to give charitably while managing RMD-driven income.