Qualified Charitable Distribution (QCD)
A direct transfer from an IRA to charity that satisfies your RMD without adding to your taxable income.
A qualified charitable distribution lets someone of the eligible age send money directly from a traditional IRA to a qualified charity. The amount counts toward your required minimum distribution for the year but is excluded from your taxable income — a better outcome than taking the RMD as income and then donating, because it lowers your AGI rather than relying on an itemized deduction.
Because a QCD reduces AGI rather than acting as a deduction, it helps even if you take the standard deduction, and the lower AGI can ripple favorably into Medicare IRMAA tiers and the taxation of Social Security. For charitably inclined retirees facing large RMDs, it's one of the most tax-efficient ways to give, and it directly defuses some of the tax pressure that RMDs create.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.