A Qualified Charitable Distribution (QCD), sometimes called an IRA Charitable Rollover, is a terrific way to make a tax-free contribution to Commonwealth School. If you are 70½ or older, you can tell your IRA administrator to transfer your contribution directly from your IRA account to Commonwealth.
During 2026, you can make charitable QCD contributions totaling up to $111,000 from your IRA. Your QCD contributions are not taxed as income to you so, even if you do not itemize your deductions, a QCD contribution provides tax savings like a charitable deduction.
Even better, if you are age 73 or older, you are probably subject to a Required Minimum Distribution (RMD) from your retirement account and RMDs are usually taxable. However, your QCD contribution counts toward your RMD without creating taxable income for you.
These are some requirements for a QCD contribution:
- You must be 70½ or older at the time of your contribution
- Your contribution must go directly from your IRA to Commonwealth
- Spouses with their own IRA accounts can each make contributions from their own IRA accounts
Your retirement plan administrator can help you make a Qualified Charitable Distribution from your IRA. Many administrators provide a simple online form to make a QCD contribution. Be sure to follow your financial institution’s procedures to ensure you receive the tax benefits of a QCD.
