THE EIGHTH WONDER OF THE WORLD – THE QCD!
FROM BALTIMORE WASHINGTON FINANCIAL ADVISORS

with Sandy Hornor | CEPS
Managing Director, Wealth Management &
Executive Manager, BWFA

and
Tyler Kluge | CFP®, ChFEB℠, CPWA®, CDFA®, CEPS, 
Financial Planner, BWFA

Episode Details:

For charitably minded retirees, a Qualified Charitable Distribution (QCD) can be one of the smartest tax strategies available. In this episode of Healthy, Wealthy & Wise, BWFA’s Sandy Hornor and Tyler Kluge explain how QCDs allow individuals age 70½ and older to donate directly from an IRA to a qualified charity—with meaningful tax benefits.

Listeners will learn how QCDs work, the eligibility rules, and why this strategy often provides more advantages than giving directly from a bank account. For example, donating through a QCD reduces adjusted gross income, which may in turn lower Medicare premiums or reduce the taxable portion of Social Security benefits. Sandy and Tyler also explain how the annual contribution limits apply—$108,000 per person in 2025, or $216,000 for married couples filing jointly.

The episode covers important differences between required minimum distributions (RMDs) and QCDs, showing why the two should not be confused. Unlike taking an RMD and then writing a check to charity, a QCD ensures the distribution is never taxed in the first place. This simple distinction can mean substantial savings.

Practical guidance is also included. The hosts explain how to properly execute a QCD, why the funds must go directly from the IRA custodian to the charity, and how deadlines affect year-end giving. They also share a timeline for planning—suggesting that clients aim to finalize QCDs well before December to ensure smooth processing.

Ultimately, QCDs represent a powerful way to align charitable giving with tax-smart planning. For clients who are both financially secure and charitably inclined, this episode highlights why QCDs are often referred to as the “eighth wonder” of retirement planning.

For more on BWFA’s approach, visit BWFA’s Tax Planning page.