A qualified charitable distribution (QCD) lets IRA owners age 70½ or older send money directly from an IRA to a qualifying charity without counting it as income. For 2026, you can give up to $111,000 this way, up from $108,000 in 2025, and the gift counts toward your required minimum distribution. Because QCDs lower adjusted gross income, they can also reduce the tax on Social Security, Medicare premium surcharges and help you keep the new $6,000 senior deduction. Here is how QCDs work and how to do one correctly.
Qualified Charitable Distribution Rules for 2026
| Rule | 2026 |
|---|---|
| Minimum age | 70½ on the date of the distribution |
| Annual limit | $111,000 per IRA owner ($222,000 for a couple with separate IRAs) |
| One-time split-interest gift | Up to $55,000 to a charitable remainder trust or charitable gift annuity, counted within the annual limit |
| Eligible accounts | Traditional and inherited IRAs; ongoing SEP and SIMPLE IRAs generally not allowed |
| Eligible charities | Public charities; not donor-advised funds, supporting organizations or private foundations |
| Counts toward RMD | Yes, once RMDs have begun |
| Deadline | December 31 of the tax year |
Why a QCD Beats Writing a Check
A QCD is excluded from income, which is better than taking an IRA withdrawal and then deducting the gift, for three reasons. Most retirees take the standard deduction and get no benefit from a cash gift. A lower AGI reduces the taxable share of Social Security and can keep you under the senior deduction phase-out. And starting in 2026, itemizers can deduct only charitable gifts above 0.5% of AGI, a limit QCDs avoid entirely.
Example
A 74-year-old married couple must take a $20,000 RMD and plans to give $8,000 to their church and a food bank. If they take the full RMD and give cash, their AGI rises by $20,000, and as non-itemizers they can deduct only up to $2,000 of the gifts under the new non-itemizer deduction. With a QCD for $8,000, only $12,000 of the RMD is taxable. In the 12% bracket, that saves about $960 of federal tax, more if it also reduces taxable Social Security.
How to Make a Qualified Charitable Distribution
- Confirm you are at least 70½ on the date of the transfer.
- Ask your IRA custodian for a QCD form, or use an IRA checkbook if offered.
- Have the custodian pay the charity directly; a check payable to you does not qualify.
- Get a written acknowledgment from the charity stating that you received no goods or services in return.
- Make sure the charity receives and cashes the check by December 31.
Reporting a QCD on Your Tax Return
Your custodian reports the distribution on Form 1099-R, usually as a normal distribution, because it does not know which part was a QCD. On Form 1040, report the full amount on line 4a and enter the taxable amount, excluding the QCD, on line 4b, writing “QCD” next to it. Do not also deduct the gift. Keep the charity’s acknowledgment with your records.
Rules and Limits to Watch
- QCDs must come from an IRA, not a 401(k). Roll workplace plan money into an IRA first if you want to use this strategy.
- Deductible IRA contributions made after age 70½ reduce the amount of QCDs that can be excluded.
- The RMD age is 73 (75 if born in 1960 or later), but you can make QCDs starting at 70½.
- Gifts to donor-advised funds do not qualify.
Who Benefits Most
- Retirees who give regularly and take the standard deduction.
- Those whose income is near the thresholds where Social Security becomes taxable or Medicare surcharges apply.
- People with large RMDs who do not need all of the income.
- Retirees near the $75,000 ($150,000 joint) senior deduction phase-out. See tax deductions for seniors.
Frequently Asked Questions
What is the QCD limit for 2026?
$111,000 per IRA owner.
At what age can I make a qualified charitable distribution?
70½, even though RMDs start later.
Can I make a QCD to a donor-advised fund?
No. Donor-advised funds, private foundations and supporting organizations are not eligible.
Does a QCD count toward my RMD?
Yes, once your RMDs have started.
Final Thoughts
A qualified charitable distribution is one of the best tax tools for charitably minded retirees. Use it instead of writing checks, coordinate it with your RMD, and report it correctly on your return. See required minimum distribution rules for 2026 for related rules.
Have questions about how this applies to your situation? Book a free consultation with Aric and get answers from a CPA.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
