Qualified charitable distributions allow you to take your retirement savings and donate it directly to charity.

The payoff: This strategy could result in big savings for retirees who are subject to required minimum distributions or RMDs, according to Ed Slott, founder of Ed Slott & Co.

"This is something you really want to get done by year end," Slott said.

Qualified charitable distributions, or QCDs, work best for retirees who must take money out of their retirement accounts and who also give to charity.

Most people need to start their required minimum distributions, or RMDs, from their retirement accounts when they turn 70½. But take note: The last day to take those distributions this year is Friday, Dec. 29.