Qualified Charitable Distributions/ QCDs
What are Qualified Charitable Distributions (QCDs)?
A Qualified Charitable Distribution (QCD) is a way for eligible individuals to donate money directly from an IRA to a qualifying charity, potentially reducing their taxable income in the process.
QCDs can be a particularly useful year-end tax planning strategy for retirees who want to support charitable causes while managing taxes on their retirement savings.
How does a QCD work?
Rather than withdrawing money from your IRA, paying income tax on the distribution, and then donating the after-tax amount to charity, you can arrange for the money to go directly from your IRA custodian to an eligible charitable organization.
When the requirements are met, the distribution is excluded from your taxable income. This can be especially valuable if you are required to take minimum distributions (RMDs) from your retirement account.
Key rules for QCDs in 2026
Age requirement: You must be at least 70½ years old when the distribution is made.
Annual limit: Up to $111,000 per person for 2026. Each eligible spouse may make a QCD from their own IRA.
Eligible accounts: Generally, traditional IRAs and certain inactive SEP or SIMPLE IRAs. Employer-sponsored plans such as 401(k)s are not directly eligible.
Direct transfer required: The IRA custodian must transfer the funds directly to the eligible charity. You cannot withdraw the money personally and then donate it.
RMD benefit: If you are required to take an RMD, a QCD can count toward some or all of that requirement.
No double tax benefit: You cannot also claim an itemized charitable deduction for the amount excluded from income through a QCD.
What types of charities qualify?
Generally, eligible public charities qualify, but donor-advised funds and certain private foundations do not. The charity's eligibility should be confirmed before arranging the transfer.
Why consider a QCD before year-end?
If you are eligible, a QCD can be an effective way to support causes you care about while managing your taxable retirement income. Plan ahead because the transfer generally must be completed by December 31 to count for that tax year.
For additional details, see the IRS's Publication 590-B on IRA distributions