Qualified Charitable Distributions (QCD) Explained
How a QCD lets IRA owners 70.5 and older give up to 111,000 dollars in 2026 directly to charity, satisfy their RMD, and exclude it from taxable income.
A Qualified Charitable Distribution is a direct transfer from a traditional IRA to a qualified charity for owners age 70.5 or older. It is excluded from taxable income and counts toward the year's Required Minimum Distribution. The 2026 per-person limit is 111,000 dollars.
What a QCD is
A QCD is a check or wire sent directly from the IRA custodian to a qualified 501(c)(3) public charity. The money never touches the IRA owner's bank account. Donor-advised funds, private foundations, and supporting organizations do not qualify.
The 2026 limit
The QCD limit is 111,000 dollars per person in 2026, indexed for inflation under SECURE 2.0. A married couple can each do a QCD from their own IRA, for a combined 222,000 dollars in the same year.
Why it beats a normal donation
A QCD is excluded from adjusted gross income entirely. That benefits you whether or not you itemize deductions, and because AGI drives Medicare IRMAA surcharges, taxation of Social Security, and other AGI-linked costs, a QCD can lower those too. A regular check to charity gets an itemized deduction at best, and only if you itemize.
How it satisfies your RMD
A QCD counts dollar-for-dollar toward the year's RMD, up to the QCD amount. If your RMD is 30,000 dollars and you do a 30,000 dollar QCD, the RMD is satisfied and none of it lands in your taxable income.
Worked example
A 74-year-old with a 40,000 dollar RMD directs the IRA custodian to send 40,000 dollars to a qualified charity. The full RMD is satisfied, no part of the 40,000 hits AGI, and the couple's Medicare IRMAA tier for the next reporting year is not pushed up by the RMD.
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Sources
Last reviewed . Educational estimates only; local conditions and codes take precedence. Consult a qualified professional for site-specific decisions.