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Here\u2019s a look at other stories affecting the financial advisor business.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
If you\u2019re age 70\u00bd or older, you can donate up to $108,000 in 2025. For married couples filing jointly, spouses aged 70\u00bd or older can also transfer up to <\/strong>$108,000 from their IRA. The QCD limit now adjusts for inflation yearly, thanks to changes enacted via the Secure Act of 2022<\/a>.\u00a0\u00a0<\/p>\n Here are the other key things to know about QCDs, and how the move can benefit retirees.<\/p>\n<\/div>\n When filing taxes, you claim the standard deduction or itemized deductions, whichever is greater. For 2025, the standard deduction is $15,750 for single filers<\/a>\u00a0and $31,500 for married couples filing jointly.<\/p>\n Your itemized deductions may include limited tax breaks for charitable gifts, medical expenses, and state and local taxes<\/a>, among other items.\u00a0\u00a0<\/p>\n However,\u00a090% of filers<\/a>\u00a0don\u2019t itemize, according to the latest IRS data, which prevents most taxpayers from claiming the\u00a0charitable deduction<\/a>.<\/p>\n<\/div>\n There\u2019s no tax deduction for a QCD, but \u201cthe amount distributed is excluded from income, which is better than a deduction,\u201d CFP Juan Ros, a partner at Forum Financial Management in Thousand Oaks, California, previously told CNBC<\/a>.\u00a0<\/p>\n QCDs won\u2019t increase your adjusted gross income, or AGI, which can boost premiums for Medicare Part B and Part D, as earnings rise. Reducing your AGI can also minimize phaseouts, or benefit reductions, for other tax breaks enacted via President\u00a0Donald Trump<\/a>\u2018s \u201cbig beautiful bill,\u201d<\/a> experts say.<\/p>\n<\/div>\n Another benefit of QCDs is that transfers can help reduce your yearly\u00a0required minimum distributions<\/a>, or RMDs.<\/p>\n Most retirees must take RMDs from pretax retirement accounts starting at age 73 or\u00a0face an IRS penalty<\/a>. Your first deadline is April 1 of the year after you turn 73, and Dec. 31 is the due date for future years.\u00a0<\/p>\n RMDs can be a pain point for some retirees, depending on the size of their accounts. You calculate RMDs<\/a> based on your previous year-end balance and an IRS \u201clife expectancy factor.\u201d<\/p>\n QCDs can be a great way to fulfill charitable intent without increasing AGI, according to CFP Jim Guarino, managing director at Baker Newman Noyes in Woburn, Massachusetts. He is also a certified public accountant.<\/p>\nHow the QCD tax break works<\/h2>\n
Satisfy your required withdrawals<\/h2>\n