How a QCD works

A QCD is a distribution your IRA trustee makes directly to a charity, not to you. Because you never receive the money, the amount is excluded from your gross income, up to the annual limit. That is different from taking a distribution and deducting a donation later: a QCD works even if you take the standard deduction, and it keeps the money out of your adjusted gross income, which matters for things like Social Security taxation and Medicare IRMAA surcharges. The eligibility requirements come from IRS Publication 590-B:

  • Age 70.5 on the transfer date. You must be at least 70.5 when the distribution is made, not merely turning 70.5 later in the year. The SECURE 2.0 Act changed the RMD age to 73 (and 75 for those born in 1960 or later), but it did not change the QCD age. That means you can start QCDs before RMDs begin.
  • Direct trustee-to-charity transfer. The trustee of your IRA must make the distribution directly to the organization. If the money touches your hands first, it is taxable income to you and the QCD treatment is lost.
  • The right account type. A QCD can come from a traditional IRA (including an inherited IRA) but not from an ongoing SEP or SIMPLE IRA.
  • An eligible charity. The recipient must be a 501(c)(3) organization eligible to receive tax-deductible contributions. Donor-advised funds and private foundations do not qualify as QCD recipients.
  • The amount would otherwise be taxable. The exclusion only covers amounts that would otherwise be included in your income. You also cannot claim a charitable deduction for the same QCD on your tax return; that would be double-dipping.

The 2026 limit: $111,000 per person

For 2026, you can exclude up to $111,000 of qualified charitable distributions from your gross income. Any QCD above the limit is included in income like any other distribution. The limit is adjusted for inflation each year, which is why many third-party pages still show stale figures ($100,000 or $105,000 from earlier years). The app on this site models the 2026 figure.

The limit is per person. If you file a joint return, your spouse (if age 70.5 or older) can also make a QCD and exclude up to $111,000 from their IRA. A married couple can therefore move up to $222,000, but each spouse's limit is tied to their own IRA and their own age.

How QCDs interact with RMDs

A QCD counts toward satisfying your required minimum distribution, dollar for dollar. If your 2026 RMD is $18,000 and you send $18,000 directly to charity as a QCD, your RMD is satisfied and none of that $18,000 enters your taxable income.

This matters most for people who do not need their full RMD for living expenses. Compare the alternatives for the same $18,000:

  • Take the RMD, then donate. The $18,000 is taxable income. A later charitable donation is only deductible if you itemize, and most retirees take the standard deduction. Meanwhile, the extra $18,000 of income can raise taxes on Social Security benefits and trigger Medicare IRMAA surcharges.
  • Take the RMD, itemize, and deduct. Better, but the deduction does not fully erase the consequences of the higher AGI, and you are still subject to itemized-deduction mechanics.
  • QCD. The $18,000 never becomes income at all. Your AGI is lower, which flows through to every income-tested calculation on your return.

You do not need to be taking RMDs to use a QCD. In the years between age 70.5 and your RMD start age, every dollar you move out via QCD shrinks the balance your future RMDs are calculated from.

The anti-abuse offset for contributions after 70.5

IRS Publication 590-B contains an anti-abuse rule: if you made deductible contributions after age 70.5 (for example, to a SEP or other IRA), your QCD exclusion is reduced by those post-70.5 deductible contributions, minus any QCDs you already excluded in prior years. In plain terms, you cannot deduct a contribution at 71 and then funnel the same dollars back out tax-free as a QCD.

If you are still working past 70.5 and making deductible contributions, track this carefully. The app's modeling accounts for the offset when you enter your contribution history.

Timing: get it done before December 31

A QCD must be completed by December 31 of the tax year to count for that year. The transfer has to leave your IRA and reach the charity in time; a check cut on December 30 that the charity does not receive until January is a problem.

Plan for a mid-December cutoff. Many custodians need days or even weeks to process a QCD request at year end. A common practical rule is to initiate the request by December 15 so the check clears by December 31. Confirm your custodian's actual processing window; it is the custodian's timeline, not yours, that controls whether the QCD lands in the right year.

A worked example (illustration)

Illustration, not advice. Assume a 76-year-old with a $600,000 traditional IRA and a 2026 RMD of $25,316 ($600,000 รท 23.7, the Uniform Lifetime factor at 76). She wants to give $10,000 to a local food bank and does not need the full RMD for expenses.

Option A: take the RMD, then write a check. She takes $25,316. All $25,316 is taxable income. She donates $10,000 by check; because she takes the standard deduction, she gets no tax benefit from the donation. Her AGI includes the full $25,316.

Option B: QCD. She instructs her custodian to send $10,000 directly to the food bank and takes the remaining $15,316 of her RMD for herself. The $10,000 QCD is excluded from income. Her RMD is satisfied ($10,000 + $15,316 = $25,316), and her AGI includes only $15,316 instead of $25,316. The $10,000 difference can reduce taxes on Social Security benefits and lower IRMAA exposure. Her actual savings depend on her full tax picture.

Common mistakes

  • Withdrawing first, then donating. The most common error. If you take the distribution and then write a charity check, the distribution is taxable income to you. The QCD treatment requires the trustee-to-charity path; you cannot recreate it after the fact.
  • Missing the direct-transfer requirement. Even if the check is payable to the charity, it must not be payable to you. Confirm with the custodian that the payment is structured correctly before it goes out.
  • Choosing an ineligible recipient. QCDs to donor-advised funds and private foundations do not qualify, even though both are legitimate charitable vehicles for other purposes.
  • Assuming the $111,000 limit is per household. It is per person. Do not plan on a $150,000 QCD from a single IRA expecting the exclusion to cover it; anything above $111,000 is taxable.
  • Forgetting the post-70.5 contribution offset. If you kept making deductible contributions after 70.5, your excludable amount may be smaller than the headline limit.
  • Waiting until December. Year-end processing delays are the classic reason a QCD lands in the wrong tax year. Start early.
  • No written acknowledgment. You need the same substantiation you would need to claim a charitable deduction: a written acknowledgment from the charity. Without it, you cannot defend the exclusion.

For reporting, your custodian reports the distribution on Form 1099-R with no special QCD code. On Form 1040, you report the full amount on the IRA distributions line and the taxable amount (zero for a fully qualifying QCD) next to it, writing "QCD" on the line.

Model your QCD

The app's Report tab includes a QCD modeling tool built on the verified 2026 figures: the $111,000 exclusion limit, the age 70.5 rule, and the interaction with your RMD. It is free, runs in your browser, and nothing leaves your device.

Model your QCD in the app

Frequently asked questions

What is a qualified charitable distribution (QCD)?

A QCD is a distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. The amount is excluded from your gross income, up to $111,000 per person for 2026.

What is the QCD limit for 2026?

You can exclude up to $111,000 of QCDs from gross income in 2026. The limit is per person, so a qualifying spouse with their own IRA can also exclude up to $111,000. It adjusts for inflation annually, which is why older pages show stale $100,000 or $105,000 figures.

Does a QCD count toward my RMD?

Yes, dollar for dollar. A QCD satisfies any part of your required minimum distribution while keeping the amount out of your taxable income.

How old do I have to be to make a QCD?

At least 70.5 years old when the distribution is made. SECURE 2.0 did not change this age even though RMDs now start later, so you can use QCDs for several years before RMDs begin.

Can a QCD go to a donor-advised fund?

No. The recipient must be a 501(c)(3) eligible to receive tax-deductible contributions. Donor-advised funds and private foundations do not qualify.

Can I take the money first and then donate it?

No. The distribution must go directly from the IRA trustee to the charity. If you receive the funds first, the distribution is taxable income to you, and it cannot be reclassified as a QCD.

Do I need to itemize to benefit from a QCD?

No. That is the core advantage: the amount is excluded from income entirely, so you get the benefit whether you itemize or take the standard deduction. You may not also claim a charitable deduction for the same amount.

Going further: a personalized review

The free app models the numbers. A planned one-time personalized RMD review report ($79, planned, not on sale yet) would combine your QCD modeling with your full RMD picture into a single document you can bring to a CPA or tax preparer. Joining the waitlist below is interest-only; nothing is for sale, and it simply helps decide whether to build it.

Join the waitlist in the app
Disclaimer. Educational purposes only, not tax, legal, or financial advice. Verify every QCD with your custodian and a qualified tax professional before executing one. The authoritative sources are IRS Publication 590-B (Distributions from Individual Retirement Arrangements) and IRS guidance on qualified charitable distributions.