Qualified Charitable Distributions: A Smart Tax Strategy for Retirement Giving
Gigi G. LeKites, CFP®, CRPC®
Qualified Charitable Distributions (QCDs) can be a great way to support the causes you care about while also managing your taxes in retirement. By giving directly from your IRA to charity, you can satisfy some or all of your Required Minimum Distribution (RMD) without adding to your taxable income. This can help keep your overall tax bill lower and may also prevent increases in Medicare premiums or other income‑based costs.
That said, QCDs work best when they’re part of a bigger plan. When used together with strategies like Roth conversions and thoughtful withdrawal planning, they can help you stay in more favorable tax brackets, protect valuable deductions, and avoid large tax swings later in retirement.
In short, QCDs are a powerful tool—but they’re even more effective when combined with a broader, well‑designed tax and income strategy.
We’re here to help make sure all of these pieces work together to support your goals now and in the future.
For educational purposes only. Nothing in this article is intended as individualized investment advice. PKS Investment Advisors, LLC (“PKS”) is a registered investment advisor with the Securities and Exchange Commission. Reference to registration does not imply any particular level of qualification or skill. PKS does not provide tax or legal advice; you should consult with your trusted tax or legal professionals before acting on any suggestions in this article. Examples and illustrations are purely hypothetical in nature, and do not represent actual PKS clients.
