If you make a qualified charitable distribution, your taxable income does not increase. This can save you on your Medicare Part B premiums in your Social Security payments.
When you are retired, your Medicare Part B benefits are deducted from your Social Security payments. For people with higher incomes, their premiums are higher. When you pull money out of your IRA, your taxable income increases. If it were to increase beyond the threshold, then your Medicare part B premiums would also increase. Even if you had only one year’s worth of higher income, you would pay more for your Medicare than you should!
The QCD avoids this expensive hassle. Your taxable income does not increase when you make a QCD to a charity out of your IRA.