Qualified Charitable Distributions, or "QCDs," have been in the news a lot lately, especially in light of proposed SECURE Act 2.0 legislation that passed the House of Representatives in March and is now pending in the Senate.

Through a QCD, starting at age 70 ½, you can instruct the administrator of an IRA to direct up to $100,000 per year to a qualified charity. This helps your tax situation because you do not need to report the amount of the QCD as taxable income.

Here are four important reminders about QCDs:

• Even though the SECURE Act changed the Required Minimum Distribution age to 72 from 70 ½, the QCD age is still 70 ½.
•  QCDs cannot be made to donor-advised funds, but you can set up a field-of-interest fund, designated fund or give to the Community Impact Fund at the Community Foundation to receive a QCD.
•  Under a version of the proposed SECURE Act 2.0 legislation, QCDs would be indexed for inflation. In addition, proposed legislation would allow you to make a one-time QCD of up to $50,000 to a charitable remainder trust or other split-interest entity.
•  Finally, be sure to coordinate your QCDs with your Required Minimum Distributions. Proper planning will help you avoid troublesome tax pitfalls.