YOUR QUESTIONS ABOUT QCDS

The editor of The Kiplinger Tax Letter responds to readers asking about qualified charitable distributions from an IRA.

- BY JOY TAYLOR

CAN I make a qualified charitable distribution from my 401(k) this year? No, QCDs cannot be done from a 401(k) or other workplace retirement plan. A QCD can only be done from an IRA.

People age 701/2 and older can transfer up to $108,000 in 2025 from a traditional IRA directly to charity. QCDs can count as all or part of your required minimum distribution (RMD), but they are not taxable, and they are not added to your adjusted gross income. The QCD strategy is a good way to get tax savings from charitable gifts for taxpayers who don’t itemize because of higher standard deductions.