How does a QCD compare with donating normally?

When you take a normal IRA distribution, it's taxable income - even if you donate it afterward. A QCD bypasses your income entirely. The money goes straight from your IRA to charity, counts toward your RMD, but never shows up as taxable income. This can keep you in a lower tax bracket and reduce Medicare premium surcharges.

Do I have to be taking RMDs to do a QCD?

No. You can do QCDs starting at age 70.5, but RMDs don't start until age 73. Doing QCDs before RMDs begin can reduce your IRA balance and future RMD amounts.

Can I do a QCD from my 401(k)?

No - QCDs must come from an IRA. If you have money in a 401(k), roll it over to an IRA first, then do the QCD. Note: you cannot do a QCD from a SEP or SIMPLE IRA that received employer contributions in the same year.

What charities qualify for QCDs?

Any 501(c)(3) public charity qualifies. Donor-Advised Funds and private foundations do NOT qualify for QCDs. The check must go directly from your IRA custodian to the charity - it cannot pass through your hands.

Can both spouses do QCDs?

Yes. Each spouse can do up to $111,000 per year from their own IRA. A married couple could direct up to $222,000 combined to charity tax-free annually.

Charitable Giving

Qualified Charitable Distribution (QCD)

FREE to View

intermediate · $500K+

After age 70.5, you can transfer up to $111,000 directly from IRA to charity.

It counts toward Required Minimum Distribution (RMD) but isn't included in taxable income.

Unlike taking the distribution, paying tax, and then donating, a QCD keeps the amount out of your taxable income.

Annual Limit

$111,000 per person per year (2026)

Want to save your results?

Create a free account to save strategies and track your progress.

Tax Benefit

Satisfies RMD without increasing taxable income

Requirements

Age 70.5 or older
IRA (not 401k - must roll over first)
Charitable intent

How to Implement

1Contact IRA custodian to set up QCD
2Specify charity as recipient (must be 501(c)(3))
3Request distribution amount (up to $111,000/year)
4Check goes directly from IRA to charity
5Counts toward RMD but excluded from income

Frequently Asked Questions

Annual Limit

$111,000 per person per year (2026)

Educational Only: This information is for educational purposes. Consult a qualified financial advisor or tax professional before implementing.

Last reviewed: April 2026

Related charitable giving strategies

Donor-Advised Fund (DAF)Donate appreciated stock, avoid capital gains tax, get immediate deduction, grant to charities over time.Charitable Remainder Trust (CRT)Convert highly appreciated assets into lifetime income stream while benefiting charity.Charitable Remainder Unitrust (CRUT)Transfer appreciated assets, receive variable income for life, charity gets remainder.

Sources

Internal Revenue Service, Rev. Proc. 2025-32
2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)
Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
Internal Revenue Service, Rev. Proc. 2025-19
2026 HSA and HDHP inflation-adjusted limits

Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.

Qualified Charitable Distribution (QCD)

Interactive Calculator

Tax Benefit

Requirements

How to Implement

Frequently Asked Questions

How does a QCD compare with donating normally?

Do I have to be taking RMDs to do a QCD?

Can I do a QCD from my 401(k)?

What charities qualify for QCDs?

Can both spouses do QCDs?

Annual Limit

Related charitable giving strategies

Sources