Qualified Charitable Distributions: Tax Savings Opportunities After OBBBA

QCDs allow taxpayers age 70 ½ and older to make donations directly from retirement accounts to qualified charitable organizations. The One Big Beautiful Bill Act (OBBBA) added a haircut to charitable deductions. Beginning in 2026, contributions are reduced by .5% of a taxpayer's adjusted gross income. This, along with the increasing standard deduction and the 60% adjusted gross income limit for donations, escalates the tax benefits of QCDs.

To garner the benefits of QCDs, the taxpayer and charity must be qualified, the contribution must be within the applicable limits, and the transaction must be executed in accordance with the provisions of IRC Section 408(d)(8).

Although taxpayers have been able to utilize QCDs since 2006, many retirement planning, estate planning, and tax-saving opportunities have been underutilized by both taxpayers and practitioners.

Listen as Lawrence K.Y. Pon, CPA/PFS, CFP, EA, USTCP, AEP of Pon & Associates, explains how QCDs are most frequently used and provides recommendations for other unique uses of this tax planning vehicle.

I. Qualified charitable distributions (QCDs): introduction

II. Qualifying taxpayers

III. Qualifying charities

IV. Charities that do not qualify

V. Tax-saving opportunities

VI. Special considerations

A. Charitable gift annuities

B. Inherited IRAs

C. Pre-Roth conversions

D. Other considerations

VII. Required minimum distributions

VIII. Estate planning

The panelist will cover these and other key issues:

• Underutilized tax planning strategies with QCDs
• Identifying taxpayers who can benefit from QCDs
• How the OBBBA enhances the tax savings of QCDs
• Satisfying QCD requirements under IRC Section 408(d)(8)

Learning Objectives

After completing this course, you will be able to:

• Identify qualified charitable organizations for QCDs
• Determine how OBBBA enhances the benefits of QCDs
• Decide which taxpayers are candidates for QCDs
• Ascertain overlooked tax planning strategies with QCDs

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

  
  

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IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).