A Qualified Charitable Distribution (QCD) allows individuals age 70 ½ and older to transfer money directly from their traditional IRA (or eligible inherited IRA) to a qualified charity and exclude that amount from taxable income. This can reduce your reported income while supporting your preferred charities — without needing to itemize deductions.
How QCDs Work (2026 Rules)
Who qualifies?
To make a QCD in 2026, you must be at least 70 ½ years old on the day of the transfer. The age requirement remains tied to 70½ even though the age for Required Minimum Distributions (RMDs) has increased (73 under SECURE 2.0 and later to 75).
Where can the funds come from?
QCDs must come directly from a Traditional IRA or a qualifying Inherited IRA. Employer plans such as 401(k)s, 403(b)s, and 457 plans are not eligible unless first rolled to an IRA.
How much can you give?
For 2026, the maximum annual QCD limit is $111,000 per individual, indexed for inflation (up from the prior $100,000 cap). A married couple can each make a QCD from their own IRA up to the annual limit.
Does a QCD count toward my RMD?
Yes — if you are already required to take an RMD, a QCD can be used to satisfy all or part of that year’s RMD requirement without increasing taxable income. However, QCDs made before RMD age do not count toward future RMDs.
Where must the money go?
The distribution must go directly from your IRA to a qualified public charity — not to a donor-advised fund, private foundation, or supporting organization — to qualify for the tax treatment.
Why QCDs Matter for Retirees
QCDs are particularly useful if you want to:
- Lower Adjusted Gross Income (AGI) without itemizing, which can help with thresholds for Medicare premiums, Social Security taxation, and certain credits;
- Satisfy RMDs tax-efficiently once you’re subject to them;
- Support a charity directly from pre-tax funds in a tax-efficient way.
For a deeper look at how distributions fit into a retirement income plan, see our Retirement Income Planning Hub.
How QCDs Interact With Other Retirement Rules
RMD age vs. QCD age
Even though the RMD age has risen to 73 (and will later increase to 75), the minimum age for QCDs remains 70 ½. That means you can make QCDs before you are required to take RMDs, though they only count toward RMDs once you are subject to them.
Standard deduction and tax planning
Because QCDs exclude income rather than providing an itemized deduction, they can be especially helpful for retirees who take the standard deduction but still want to reduce taxable income.
Charitable vehicles that don’t qualify
Gifts to donor-advised funds, private foundations, or supporting organizations generally do not qualify as QCDs, even if they are IRS-recognizable charities.
Frequently Asked Questions (Retiree-Focused)
Q: Can I make a QCD from a Roth IRA?
Technically, yes, but QCDs from Roth IRAs are uncommon because Roth IRA distributions are generally already tax-free. Most QCD planning focuses on traditional IRAs or inherited IRAs.
Q: If I make a QCD that is larger than my RMD for the year, does it count toward future RMDs?
No. A QCD larger than your RMD only applies to the current year’s RMD requirement. Future RMDs must be met separately.
Q: When is the deadline to make a QCD?
A QCD must be completed by December 31 of the tax year for it to count in that year. There are no extensions beyond year-end.
Q: Are QCDs deductible on Schedule A?
No. QCDs are excluded from income rather than taken as an itemized deduction, which means they reduce taxable income without needing to itemize.
Q: Can my spouse and I both make QCDs?
Yes — if both spouses are at least 70 ½, each can make a QCD up to the annual limit from their respective IRA.
Related Planning Topics
Required Minimum Distributions (RMDs) & Timing – How RMD timing affects taxable income and planning.
Retirement Tax Planning – A broader look at taxes in retirement.
Social Security Timing Decisions – How benefit timing interacts with income and AGI.
How to Reduce IRMAA – Approaches to managing Medicare surcharges.
Qualified Charitable Distributions can be a thoughtful part of retirement income and tax planning — especially when integrated with timing for RMDs, Social Security, and Medicare premiums. If you’d like a planning-first look at how QCDs might fit into your overall retirement strategy, you’re welcome to Request an Introductory Conversation.
5 Comments
Comments are closed.