Beyond Cash Gifts: A Better Way to Give for Some Retirees
In case you missed it, we put out a blog a few weeks ago about the new deductions for charitable contributions. As we know how important making charitable contributions are to our clients, we wanted to make you aware of another way to give back with something called Qualified Charitable Distributions. They allow those who are 70 ½ or older to donate up to $111,000 (up from $108,000 in 2025) directly from a taxable IRA to charity.
The biggest difference between these two methods is the form of payment. The new charitable deductions from the last blog apply to cash donations while QCDs come directly from retirement accounts. So, which contribution method should you be using to give to charity? The first thing to consider would be age. The deductions for cash donations are available to anyone while QCDs are only eligible for those that are 70 ½ or older. In addition, if you are looking to make larger donations, QCDs may be a better option for you as cash donation deductions are limited to $1,000 - $2,000 for those using the standard deduction.
Even better for those that are of Required Minimum distribution age (73 currently, increasing to age 75 for those born after 1960), you may elect to use a QCD to fulfill that requirement. This is a great option for those looking to reduce taxable income or avoid going over income limit thresholds!
Another change that was enacted in 2026 was surrounding how these QCD transfers are reported. In the past, the responsibility fell on you, as the taxpayer, to identify which donations were QCDs come tax time. Moving forward, we will have the ability to make that distinction when the gifts are made, and it will be clearly notated on your 1099-R for tax reporting. Although a slight change, it leaves one less thing to take care of during tax season which we know everyone would appreciate!
If you have been giving to charity or plan to start in 2026, be sure to check out our blog on the new deduction increases as well as consider qualified charitable distributions (QCD) even if you are not at full RMD age. As always, if you have any questions, please reach out!
Investment Advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Great Valley Advisor Group and Haas Financial Investment Advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Great Valley Advisor Group and Haas Financial Group are separate entities. This is not intended to be used as tax or legal advice. Please consult a tax or legal professional for specific information and advice. are separate entities. This is not intended to be used as tax or legal advice. Please consult a tax or legal professional for specific information and advice.
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