Personal Finance & Estate › Retirement accounts & pensions › Required minimum distributions (RMDs)
Qualified charitable distribution (QCD) from an IRA
From 70½; $111,000 cap (2026)· Tax rule
Standard practiceWhat most planners, CPAs and attorneys recommend.
A direct gift from an IRA to charity, allowed from age 70½, that counts toward RMDs but is never taxed.
See it on the Personal Finance & Estate map →How it works
The IRA custodian pays a qualified charity directly, up to $111,000 per person in 2026. The gift stays out of adjusted gross income, which can also lower Medicare IRMAA surcharges and tax on Social Security. Donor-advised funds and private foundations don't qualify, and 401(k) money must roll into an IRA first. Standard practice for charitable retirees, especially those taking the standard deduction. Main trap: the 1099-R doesn't flag it; tell your preparer to mark 'QCD' on the return.
Why it matters for you
It is often the cheapest way to give at 70½ or older; the 2025 law's new 0.5%-of-income floor on itemized gifts adds to its edge.
Rules, limits and sources (2026)
IRC Sec. 408(d)(8), made permanent in 2015; SECURE 2.0 indexed the cap to inflation; IRS Publication 590-B and Form 1040 instructions.
Connections (2)
▸Qualified charitable distribution (QCD) from an IRA can satisfy Required minimum distributions (RMDs)Law or rule (2026)
How they connect
Once RMDs begin, QCDs made during the year count toward that year's required amount. So a charitable retiree can send some or all of an RMD straight to charity, meeting the IRS minimum without adding that amount to taxable income.
When it applies
Available from age 70½, before RMDs start at 73; the gift must leave the IRA by December 31.
The rule
IRC Sec. 408(d)(8) and IRS Publication 590-B; on Form 1040, 'QCD' is written next to the IRA distribution line.
Watch out for
Whether a QCD or a gift of appreciated stock to a donor-advised fund is better depends on your tax picture; ask your CPA.
▸Qualified charitable distribution (QCD) from an IRA can lower income that sets IRMAA (income surcharge on Parts B & D)Standard practice
How they connect
A QCD sends IRA money straight to charity and leaves it out of adjusted gross income, the base Medicare uses for IRMAA. At 70½ or older, giving up to $111,000 a year this way, including amounts that satisfy RMDs, can keep income under an IRMAA tier two years later.
When it applies
Created by the 2006 Pension Protection Act and made permanent in 2015; SECURE 2.0 indexed the cap to inflation from 2024.
How sure?
IRC Sec. 408(d)(8) excludes QCDs from income; IRMAA's modified AGI is AGI plus tax-exempt interest, so excluded gifts never enter it.
Watch out for
Whether a QCD or a gift of appreciated stock saves more depends on brackets, deductions and the IRMAA line; CPAs model it case by case.