Starting in 2024, the cap will be indexed for inflation. The first adjustment in 2024 has raised the max to $105,000. A married couple with their own IRAs can transfer a total of $210,000 ($105,000 from each of their accounts).
Your advantage: For retirees who don’t need to draw income from a tax-deferred retirement account, a QCD offers several benefits, including a potentially lower tax bill. That’s because a QCD is not taxable, as a withdrawal from a traditional IRA would be. By taking the place of your RMD, a QCD can reduce your taxable income.
“Even if you don’t need to take RMDs yet,” Polimeni notes, “trimming the size of your IRA now with a sizable gift to charity could mean smaller RMDs later” — an important consideration if RMDs will push you into a higher tax bracket. “If there’s a charitable organization you’re fond of, this may be a chance to make a major gift.”