Each year, an IRA owner age 70½ or over can transfer up to $100,000 to charity tax-free. For a married couple, if both spouses are age 70½ or over and both have IRAs, each spouse can transfer up to $100,000 for a total of up to $200,000 per year.
Normally, distributions from a traditional IRA are taxable when received. With a Qualified Charitable Distributions (QCD) if the distribution is paid directly from the IRA to an eligible charitable organization it becomes tax-free.
QCDs can be made electronically directly to the charity, or by check payable to the charity. Some IRA trustees provide a checkbook for the purpose of making donations from an IRA account. An IRA distribution made directly to the IRA owner, or a check made payable to the IRA owner does not count as a QCD.
Any IRA owner who wishes to make a QCD for 2023 should contact their IRA trustee soon to allow time to complete the transaction before the end of the year.