For taxpayers who are charitably inclined and who face traditional IRA required minimum distributions (RMDs), the qualified charitable distribution (QCD) is a great tax planning strategy. It allows you to avoid taxable income on the RMD, meaning:

Lower adjusted gross income (AGI)

Lower taxable Social Security

Lower estimated tax payments if AGI is less than $150,000

Lower income-related monthly adjustment amount (IRMAA), which can increase the fee that’s added to Medicare Part B and Part D premiums for individuals with higher income

Lower taxable income

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