Required Minimum Distributions (RMDs) are mandatory withdrawals from retirement accounts beginning at:
• Age 73 for those born 1951–1959
• Age 75 for those born in 1960 or later [schwab.com]

RMD withdrawals increase taxable income, which may raise your tax bracket and Medicare premiums. [schwab.com]

A Qualified Charitable Distribution (QCD) is a direct transfer from an IRA to a qualified 501(c)(3).
Available starting at age 70½, earlier than RMD age. [schwab.com]
A QCD counts toward your RMD while avoiding taxable income entirely.
QCDs cannot go to donor-advised funds or private foundations. [kahnlitwin.com]

Why QCDs Are More Valuable in 2026…The new One Big Beautiful Bill Act (OBBBA) significantly limits charitable deductions — but QCDs are not affected.

What the One Big Beautiful Bill means for high-net-worth individuals – via elliottdavis.com

Only the amount above 0.5% of AGI is deductible. [schwab.com], [elliottdavis.com]
High-income taxpayers see their deduction’s value capped at 35% instead of 37%. [elliottdavis.com]
Because QCDs bypass AGI and deduction limits completely, they offer better tax efficiency for many donors.

Up to $111,000 per person in 2026. [schwab.com]
Married couples may each give up to their own limit.

Up to $55,000 of the QCD limit can be directed one time to a Charitable Remainder Trust (CRT) or Charitable Gift Annuity (CGA) [schwab.com]

Traditional IRA, Inherited IRA, SEP IRA, SIMPLE IRA (if no longer contributing). Not allowed: 401(k)s. [schwab.com]

• Reduces your taxable income (vs. deductions that now face AGI floors). [kahnlitwin.com]
• Helps control Medicare IRMAA surcharges tied to AGI. [elliottdavis.com]
• Allows tax-efficient giving even if you take the standard deduction. [kahnlitwin.com]

Learn more about strategic charitable giving in this summary by William Blair, the corporate sponsor of Friends of Acadia’s planned giving program: Think Strategically About Charitable Giving [PDF]

Contact Lisa Horsch Clark, Vice President of Planned Giving, with questions, ideas, or information:
207-370-4926 Direct | 207-669-2152 Mobile/Text/Voice | lisahorsch@friendsofacadia.org

Important: This material is for informational purposes only and should not be considered tax, legal, or financial advice. Individuals should consult their own professional advisors regarding their specific circumstances.