Charitable Giving From IRAs: Qualified Charitable Distributions in 2026
If you are 70½ or older and give to charity or are considering doing so, a Qualified Charitable Distribution (QCD) is often the most tax-efficient way to do it.
New tax rules this year shrink the value of ordinary charitable deductions for many households, especially those who relied on itemized deduction.
Qualified Charitable Distributions (QCDs) provide a workaround to the rule changes and can benefit both those who itemize and those who take the standard deduction.
The desire to benefit charities and make a positive impact on others remains the primary driver of charitable giving, but Qualified Charitable Distributions (QCDs) can provide a meaningful financial benefit for those who were going to give to charity anyway.
When yearly tax and charitable planning comes to mind, QCDs are worth real consideration.
What is a Qualified Charitable Distribution (QCD)?
A QCD is a gift sent directly from your IRA custodian to a qualified charity. The money never passes through your hands, so it never counts as your income.
That is the key difference from a regular gift. Normally you withdraw from your IRA, pay tax on it, then write a check and hope to deduct it.
With a QCD, the distribution is simply left out of your Adjusted Gross Income (AGI) entirely because you never received the money.
You get the tax benefit from a reduced Adjusted Gross Income (AGI) whether or not you itemize or use the standard deduction.
You may also get the benefit of lower Medicare premiums from a reduced Adjusted Gross Income (AGI) too.
A Qualified Charitable Distribution also counts toward your annual Required Minimum Distribution (RMD) from Traditional IRAs once you reach RMD age (currently age 73).
The 2026 QCD Rules at a Glance
You can give up to $111,000 per person through QCDs in 2026, up from $108,000 in 2025.
A married couple can each give up to that amount from their own IRAs.
Rule | 2026 Detail |
Minimum age | 70½ on the day the money leaves the IRA |
Annual limit | $111,000 per person, indexed to inflation |
Eligible accounts | Traditional IRAs; inherited IRAs if the beneficiary is 70½; inactive SEP and SIMPLE IRAs |
Not eligible | 401(k)s and other workplace plans (rollover to an IRA first) |
Eligible charities | 501(c)(3) public charities |
Not eligible | Donor-advised funds, private foundations, supporting organizations |
Deadline | Funds must leave the IRA by December 31, 2026 |
QCDs start at 70½, but RMDs now begin at 73.
That leaves a window of a few years where QCDs still cut your taxable IRA balance before RMDs arrive.
Why QCDs Matter More in 2026
The One Big Beautiful Bill Act, signed July 4, 2025, changed charitable deductions starting in 2026 to reduce the tax deduction provided to those who itemize.
These changes don't impact Qualified Charitable Distributions (QCDs) at all because a QCD isn't a deduction, it excludes IRA distributions from income entirely.
A deduction for non-itemizers, but a small one. If you take the standard deduction, you can now deduct up to $1,000 of cash gifts ($2,000 married filing jointly). Gifts to donor-advised funds don't count. A QCD has no such cap.
A 0.5% floor for itemizers. Only giving above 0.5% of your AGI is deductible. At $200,000 of AGI, the first $1,000 of gifts earns no deduction.
A cap for top earners. Households in the 37% bracket now get at most a 35% tax benefit per dollar deducted.
Meanwhile, as the table below shows, the standard deduction has increased substanitally for those age 65+.
As a result of the large increase in the standard deduction, many retirees who previously itemized deductions may now be better off taking the standard deduction.
And when taking the standard deduction, a Qualified Charitable Distribution becomes the primary way to receive a tax benefit from charitable giving (aside from the relatively limited $1k deduction for single filers / $2k deduction for married filers for those who take the standard deduction).
The Hidden Bonus: Reduced Adjusted Gross Income
A Qualified Charitable Distribution lowers Modified Adjusted Gross Income (MAGI) itself, and a lower MAGI comes with several key potential benefits for retirees.
1 - The new senior deduction. Taxpayers 65 and older can deduct an extra $6,000 each through 2028. It shrinks by 6 cents per dollar of income above $75,000 MAGI (single) or $150,000 MAGI (joint), and disappears entirely at $175,000 MAGI (single) or MAGI $250,000 (married). Lower income from QCDs could mean qualifying for a larger age 65+ bonus deduction than you would have otherwise qualified for.
2 - Medicare premiums (IRMAA). Medicare surcharges are based on income from two years earlier. Your 2026 income sets your 2028 Part B and D premiums. Surcharges currently start above $109,000 single or $218,000 joint. Lower income by utilizing QCDs could reduce Medicare premiums for some.
3 - Social Security taxation. Up to 85% of benefits can be taxed as other income rises. Lower AGI can mean less of your benefit is taxed.
An Example: Same Gift, Different Result
Tom and Linda are both age 74. They're married and they file taxes jointly.
Their 2026 Required Minimum Distribution from their IRAs is $30,000 which is typically included in their adjusted gross income, subject to taxes, and could potentially increase Medicare premiums too depending on how much income they have from other sources.
They give $10,000 a year to their church and local food bank (both qualified charities).
Like most retirees, they take the standard deduction. (Figures are illustrative.)
No QCD Scenario: Take $30k taxable RMD from IRA, then write $10k check to charity once RMD deposited into bank | $10k QCD Scenario: Send $10k directly to charity from IRA, then take $20k taxable RMD (meets $30k RMD combined) | |
Portion of RMD added to Adjusted Gross Income | $30,000 | $20,000 |
Tax benefit from the $10,000 gift | $2,000 max deduction for non-itemizer | $10,000 excluded from income |
Gift amount that still gets taxed | $8,000 | $0 |
Federal tax saved (22% bracket) | $440 ($2k deduction x 22%) | $2,200 ($10k lower income x 22%) |
The gift is identical. Only the routing of the funds changed.
They were going to give $10k to charity either way.
Sending the $10k directly from their IRA to charity saved them $1,760 ($2,200 - $440) compared to taking the $10k from their IRA, placing it in their bank, then writing a check from the bank account to the charity.
And because their Adjusted Gross Income is $10,000 lower, they may also reduce Medicare premiums too.
Mistakes That Can Cost You The Tax Break
Taking the money personally first. If the IRA pays you and you then donate, it is a taxable withdrawal plus a regular gift. The check must be payable to the charity. If processed by wire transfer, the funds must go directly to the charity.
Taking your RMD before the QCD. The first dollars out of an IRA count toward your RMD. Once you've taken your RMD payable to yourself personally, a later QCD can't undo that. Before taking your entire RMD personally, consider if you'd like to use QCDs at all to benefit charity and reduce your adjusted gross income.
Giving to the wrong kind of charity. Donor-advised funds and private foundations don't qualify. Check the charity's status with the IRS's Tax Exempt Organization Search.
Missing it on your tax return. Your Form 1099-R which reports IRA distributions generally won't reduce the taxable amount for a QCD. Tell your tax preparer about your QCD so it's correctly reported on Form 1040.
How to make a QCD before December 31
Confirm you qualify. You must be 70½ by the date of the distribution, not just by year-end.
Choose your charities and verify them. Have each charity's legal name, address, and wire transfer deposit info (if sending the QCD by wire) ready.
Work with your financial advisor or IRA custodian to process the QCD. Request the QCD be sent directly to the charity, not to you personally.
Give the charity a heads-up. Checks or wire transfers sent by the IRA custodian can arrive without your name attached. Ask the charity to watch for it.
Ask the charity for an acknowledgment letter. Keep it with your tax records.
Tell your tax preparer. Share the amount, date and charity for each QCD.
Many IRA custodians set processing cutoffs for QCDs prior to 12/31, so it's best not to wait until the last minute and plan your QCDs well in advance of 12/31.
The Bottom Line
If you're 70½ or older, own a traditional IRA and already give to charity, a QCD is worth consideration especially given recent tax law changes described above.
The desire to benefit charities and make a positive impact on others remains the primary driver of charitable giving, but Qualified Charitable Distributions (QCDs) can provide meaningful financial benefits for those who were going to give to charity anyway.
This article is for general education and is not tax, legal or investment advice. Rules and limits change, and every situation is different. Talk with your tax professional or financial advisor before making a Qualified Charitable Distribution.
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This article is for informational purposes only and should not be considered as tax or legal advice. Advice is only provided after entering into an Advisory Agreement with the Advisor.
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