The charitable IRA rollover, or qualified charitable distribution (QCD), is a special provision allowing particular donors of age 70.5 to exclude from taxable income—and count toward their required minimum distribution—certain transfers of Individual Retirement Account (IRA) assets that are made directly to charities recognized by the IRS. A Roth IRA differs from a traditional IRA.
A charitable IRA rollover makes it easier to use your IRA assets, during lifetime, to make charitable gifts. Your qualified charitable distributions can satisfy all or part the amount of your required minimum distribution from your IRA and would be excluded from income providing a tax deduction. States and municipalities differ on whether you need to include the distribution in your taxable income. Check with your tax or financial advisor, or your taxing authority, to be sure.