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A QCD lets you send money directly from your IRA to a qualified 501(c)(3) charity. The result?
- Satisfies your full RMD for the year
- Excluded from taxable income (even if you take the standard deduction)
- Lowers your Adjusted Gross Income — reducing Medicare IRMAA surcharges and taxes on Social Security
David Snyder shared a real Northern Arizona success story: A Prescott couple with a $94,000 RMD used QCDs to donate $45,000 directly to the Yavapai Food Bank, Prescott Meals on Wheels, and their church. Their taxable income dropped by $45,000, saving them over $14,000 in federal tax plus another $4,800 in lower Medicare Part B & D premiums the following year — all while helping neighbors in need.
Wayne Brewer pointed out that Arizona allows an additional credit of up to $1,339 per couple (2025) for donations to Qualifying Charitable Organizations — and QCDs can be structured to capture both federal and state benefits. That’s money that would have gone to the IRS now staying right here in Yavapai County.More Wealth-Protection Strategies Covered
- Strategic Roth conversions before RMD age to create future tax-free income
- Using Donor-Advised Funds for larger gifts with immediate tax advantages
- Timing medical expenses and charitable giving to stay under IRMAA thresholds
- How to avoid the Social Security “tax torpedo” with smart distribution planning
Chris Damron summed it up perfectly: “Most retirees are accidentally volunteering to overpay Uncle Sam. A 30-minute conversation can change that forever.”
- Schedule a complimentary RMD & QCD review with David A. Snyder CPA
- Book a retirement income strategy session with New Life Financial
- Official IRS QCD Guidance: https://www.irs.gov/retirement-plans/qualified-charitable-distributions
- 2025 Arizona Qualifying Charity List & Credit Amounts: https://azdor.gov/tax-credits
- Explore local charities that qualify for both QCDs and AZ tax credits: https://azdor.gov/tax-credits/qualifying-charitable-organizations
Stop overpaying taxes. Start directing your money where it matters most — your family, your legacy, and your community.
Author: Lizzy McNett
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