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Written by Nancy Gates
Updated over a week ago

What is a QCD?

A QCD is a distribution that goes directly from an IRA to a qualified charity. QCDs are allowed after you turn 70.5, and allow you to transfer up to $100,000 per individual per year from your IRA to a qualified charity.

This is especially advantageous when you are subject to RMDs because:

  • QCDs may satisfy your RMD requirement

  • QCDs are excluded from your AGI.

So, if your RMDs are taking you above your preferred tax bracket or IRMAA tier and you are charitably inclined, you may want to consider QCDs.

How do I model a QCD?

You may model a QCD using the Disbursement feature, and selecting "deductible." Navigate to My Plan > Expenses and Healthcare > Disbursements.

Unfortunately, at this time, the calculation will not reduce the RMD but this feature enhancement is on our Roadmap.

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