Give Tax-Free from Your IRA

If you're 70½ or older, a Qualified Charitable Distribution is one of the most tax-efficient ways to support BetterInvesting's mission of investment education.

What Is a QCD?

A Qualified Charitable Distribution is a direct transfer from your IRA to a qualified 501(c)(3) charity like BetterInvesting. The money goes straight from your IRA custodian to us — never passing through your hands.

When done correctly, the transfer is excluded entirely from your taxable income.

Why QCDs Beat Regular Charitable Giving

You benefit whether you itemize or not.

Most people now take the standard deduction, which means regular charitable gifts provide no tax benefit. A QCD is different — because the money never counts as income in the first place, you get the tax advantage regardless of whether you itemize.

Your adjusted gross income stays lower.

This matters more than many people realize. A lower AGI can:

Reduce taxation of Social Security benefits — Up to 85% of your Social Security can be taxable depending on your income. QCDs keep IRA distributions out of that calculation.
Lower Medicare premiums — The Income-Related Monthly Adjustment Amount (IRMAA) adds surcharges to Medicare Parts B and D if your modified AGI exceeds $106,000 (single) or $212,000 (married filing jointly). QCDs can help you stay below these thresholds.
Preserve eligibility for other deductions and credits — Many tax benefits phase out at higher income levels.

QCDs and Required Minimum Distributions

If you're 73 or older, you're required to take annual distributions from your IRA, whether you need the money or not. Here's what many people don't realize: a QCD can count toward your Required Minimum Distribution.

Same money leaving your IRA. But tax-free — if it goes directly to charity.

The Timing Rule That Trips People Up

The IRS treats the first dollars out of your IRA each year as satisfying your RMD. This means:

QCD first, then RMD = The QCD satisfies part or all of your requirement, tax-free
RMD first, then QCD = The RMD is taxable, and the QCD is a separate (still tax-free) gift that doesn't offset anything

You cannot retroactively convert an RMD to a QCD. Once you've taken your distribution the regular way, those dollars are taxable.

If You Take Your RMD Early in the Year

Many people take their RMD in January to "get it out of the way." If that's you, arrange your QCD before contacting your custodian about your RMD.

If you have automatic RMD distributions set up with your custodian, contact them to pause or delay the automatic distribution so you have time to arrange a QCD first.

Who Qualifies

You can make a QCD if you:

Are at least 70½ years old at the time of the distribution
Have funds in an eligible IRA:
- Traditional IRA
- Rollover IRA
- Inherited IRA
- Inactive SEP IRA (no longer receiving employer contributions)
- Inactive SIMPLE IRA (no longer receiving employer contributions)

Note: The age for QCDs (70½) is different from the RMD age (73). You can start making QCDs before you're required to take minimum distributions.

What Doesn't Qualify

Employer plans — 401(k)s, 403(b)s, and active SEP/SIMPLE IRAs don't qualify. However, you may be able to roll funds from an employer plan into a traditional IRA, then make a QCD.
Donor-advised funds and private foundations — The recipient must be a public 501(c)(3) charity.
Gifts where you receive something in return — No benefit dinners, merchandise, or membership perks in exchange for the gift.
Roth IRAs — Technically eligible, but since Roth distributions are already tax-free, there's usually no additional benefit.

2026 QCD Limits

Per person $111,000 limit
Married couples (combined) $222,000 limit

You can direct your QCD to a single charity or split it among several charities, as long as the total doesn't exceed your annual limit.

How to Make a QCD to BetterInvesting

Step 1: Decide on Your Amount

You can give any amount up to $111,000. If you're 73+ and want to satisfy your RMD, check your RMD amount first — your QCD can cover part or all of it.

Step 2: Contact Your IRA Custodian

Each financial institution has its own process. Call your custodian (Fidelity, Schwab, Vanguard, etc.) and request a direct transfer to BetterInvesting.

Ask specifically:

What forms do I need to complete?
How long will processing take?
Will the check be mailed to the charity, or is an electronic transfer available?

Step 3: Provide Our Information

Your custodian will need:

Detail	Information
Organization Name:	National Association of Investors Corp. (dba BetterInvesting)
Tax ID (EIN):	38-2111435
Address:	570 Kirts Blvd., Suite 237, Troy, MI 48084
Tax Status:	501(c)(3) public charity

Important: Custodian checks should be sent to our Troy physical address, not a PO Box.

Step 4: Follow Up

Don't assume the transfer happened. Check back with your custodian in a week to verify the transfer is in process. Ask for the expected completion date.

Step 5: Let Us Know

Please notify us once you've initiated a QCD so we can watch for its arrival and ensure it's properly credited to you. Contact us at:

Contact Cliff Trent at clifft@betterinvesting.org or (248) 654-3035.

Step 6: Get Your Acknowledgment

Once we receive your gift, we'll send a written acknowledgment confirming the amount and date received. Keep this with your tax records.

Tax Reporting

Your IRA custodian will report the QCD on Form 1099-R. Some custodians use Code Y to indicate a QCD; others report it as a normal distribution.

When you file your taxes, report the full distribution amount on Form 1040, Line 4a. On Line 4b (taxable amount), enter the amount minus your QCD. Write "QCD" next to Line 4b.

Example: You took a $50,000 distribution, of which $30,000 was a QCD. Line 4a = $50,000. Line 4b = $20,000 (with "QCD" notation).

As always, consult your tax advisor for guidance on your specific situation.

Frequently Asked Questions

Can I make a QCD if I'm still working and contributing to my IRA?
If you've made deductible IRA contributions after age 70½, your QCD amount may need to be reduced. Consult your tax advisor.

Can I make multiple QCDs in one year?
Yes. You can make as many QCDs as you like throughout the year, to one or multiple charities, as long as the total doesn't exceed $111,000.

What if my QCD is larger than my RMD?
The excess doesn't carry over to future years. Each year's RMD must be satisfied separately.

Can I make a QCD to satisfy my spouse's RMD?
No. Each spouse must make QCDs from their own IRA to satisfy their own RMD.

How long does a QCD take to process?
It varies by custodian — anywhere from a few days to several weeks. If your custodian mails a physical check, add transit time. Start the process early, especially near year-end.

What if my custodian sends the check to me instead of the charity?
If the check is made payable to the charity (not to you) and you deliver it to the charity, it still qualifies as a QCD. But if the check is payable to you, it's a regular distribution — taxable — and you cannot convert it to a QCD after the fact.

Contact

Ready to make a QCD to BetterInvesting? Have questions about the process?

Contact Cliff Trent at clifft@betterinvesting.org or (248) 654-3035.

We'll provide any additional information your custodian needs and ensure your gift is properly received and acknowledged.

BetterInvesting (National Association of Investors Corp.) is a 501(c)(3) nonprofit organization. EIN: 38-2111435. Gifts are tax-deductible to the extent allowed by law. This page provides general information about QCDs and is not tax advice. Please consult your tax advisor for guidance on your specific situation.