Qualified Charitable Distributions

• You must be at least 70½ years old to be eligible to make a QCD.
• QCDs must be made from IRAs (including inactive SEP and SIMPLE plans). Distributions from any other type of retirement plan (401(k), 403(b), 457, Keogh, etc.) will not qualify.
• In 2025, you can now make QCDs totaling up to $108,000 annually (the original $100,000 limit has been indexed for inflation).
• QCDs used to make outright gifts are excluded from federal taxable income and count toward required minimum distributions (RMDs). If you are subject to an RMD, the federal tax exclusion may allow you to remain in a lower income tax bracket and potentially eliminate “high income” tax penalties. If you will claim the income tax standard deduction, a QCD may act like an itemized deduction by reducing federal taxable income dollar for dollar.
• In 2025, you can now make in a single calendar year during your lifetime QCDs totaling up to $54,000 (the original $50,000 limit has been indexed for inflation) to fund a new charitable gift annuity or charitable remainder trust for you, your spouse, or both of you; any remaining QCD allowance for that year must be used for outright gifts. Your QCD will be excluded from federal income in the year you create your gift and will count toward an RMD. Payments you receive from a charitable remainder trust or gift annuity will be taxed as ordinary income when received.
• You cannot claim a federal income tax charitable deduction for your QCD. State laws may vary, and some states may treat QCDs as taxable income followed by a deduction. Please consult your tax advisor to learn more.
• QCDs must benefit qualified charities. QCDs cannot be made to donor-advised funds or family foundations.
• QCDs must be distributed directly to the charity by your IRA administrator—amounts distributed to you first and then given to charity do not qualify as QCDs.
• Your QCD must be completed on or before December 31, 2025, to be counted in the 2025 tax year.

HOW TO SET UP A QUALIFIED CHARITABLE DISTRIBUTION

You must instruct your IRA plan administrator to make a QCD. Some IRA administrators offer their own instruction forms, which often can be found online. The Office of Gift Planning can provide you with the legal names and tax ID numbers you may need to direct your support to any UVA school or area you wish to benefit, or to create a charitable trust or gift annuity.

The Office of Gift Planning can also provide you with sample letters (1) directing your plan administrator to make a QCD to UVA, and (2) notifying UVA of your QCD gift, how you want it to be used, and, if applicable, how you want your gift divided among two or more UVA schools or areas.

Contact giftplanning@virginia.edu