Federal rules for readers across the U.S.
Qualified Charitable Distribution (QCD)
Educational information only, not personalized tax, legal, or investment advice. Christian is a licensed insurance agent (NC Life & Health), not a CPA or registered investment adviser. Discuss your own situation with a qualified professional.
Who can make one
You must have actually reached age 70 and a half on the date of the distribution, not just during that calendar year. The money has to come from an IRA: a traditional, rollover, or inherited IRA. A distribution from a 401(k) or other workplace plan does not qualify. The transfer must go directly from the IRA custodian to the charity. If the money passes through your hands first, it is an ordinary taxable distribution.
The 2026 limit
The annual cap for 2026 is $111,000 per person, up from $108,000 in 2025, and it is indexed for inflation. A married couple where each spouse has an IRA and each meets the age rule can exclude up to $222,000 combined. There is also a once-in-a-lifetime election to direct up to $55,000 of a year's QCD to a split-interest entity such as a charitable remainder trust or a charitable gift annuity, and that counts against the $111,000 cap. If you made deductible IRA contributions after turning 70 and a half, those contributions reduce the amount you can exclude.
How it helps with RMDs and IRMAA
If you are 73 or older and owe a required minimum distribution, a QCD counts toward it dollar for dollar, up to the cap. The difference from taking the RMD and then donating is that the QCD never enters your adjusted gross income at all. That matters because adjusted gross income drives how much of your Social Security is taxed and whether you owe IRMAA surcharges on Medicare Part B and Part D two years later. A QCD also helps if you take the standard deduction, since you get the benefit without needing to itemize.
What does not count
The charity must be a public charity eligible for tax-deductible contributions. Donor-advised funds, private foundations, and supporting organizations are excluded. You cannot receive goods or services in return. The QCD must be completed by December 31 of the tax year. This is educational information, not tax advice. Confirm the charity's status and your own situation with a tax professional before making one.
| Choice | How it is taxed |
|---|---|
| Qualified charitable distribution | Never enters adjusted gross income, up to $111,000 in 2026 |
| Take the RMD, then donate | The RMD is taxable income first; a deduction only helps if you itemize |
| QCD and the standard deduction | Still helps, no itemizing needed |
| QCD and Medicare premiums | Lower income can mean lower IRMAA two years later |
Your records checklist
- Confirm you are 70 and a half on the date of the transfer.
- Ask your IRA custodian to send the money directly to the charity.
- Confirm the charity is a qualifying public charity, not a donor-advised fund or private foundation.
- Complete the transfer by December 31 for it to count that tax year.
- Check your Form 1099-R and tell your tax preparer, since custodians often do not code QCDs separately.
Common questions
- Does a QCD count toward my required minimum distribution?
- Yes. A QCD counts toward your RMD dollar for dollar, up to the $111,000 annual cap, as long as you meet the age and direct-transfer rules.
- Can I make a QCD from a 401(k)?
- No. QCDs can only come from IRAs. You would need to roll the money into an IRA first, and that rollover has its own rules and timing.
- Can my spouse and I each make a QCD?
- Yes, if each of you has an IRA and each meets the age rule. The $111,000 cap is per person, so a couple can exclude up to $222,000 combined in 2026.
Sources and current instructions
Check the tax year and any later updates before acting. These are the primary sources used for this guide.