Qualified Charitable Distributions (QCDs) From an IRA

A qualified charitable distribution lets an IRA owner age 70½ or older send a donation from the IRA directly to charity without counting it as taxable income. IRA owners can use it to give from pre-tax savings.

It can be a tax-efficient way to make gifts you already planned. This guide uses IRS Publication 590-B, the IRS IRA distribution FAQs, IRC section 408(d)(8), and IRS Notice 2025-67 for 2026 limits.

A sealed cream envelope leaning on a plain wooden donation box beside a cloth-bound ledger and a sprig of greenery, suggesting a qualified charitable distribution from an IRA.
A qualified charitable distribution goes straight from the IRA to the charity.

What is a qualified charitable distribution (QCD)?

A qualified charitable distribution (QCD) is an otherwise taxable IRA distribution paid by the IRA custodian or trustee directly to a qualified charitable organization.

The amount is excluded from income rather than included and then deducted. Those are the tax benefits: the donation never shows up in adjusted gross income.

The trade-off is that you cannot also claim a charitable deduction for the same donation.

QCD rules for 2026

Age 70½ on the date of the distribution

You must be at least age 70½ when the distribution is made, not just by year-end. The QCD age does not depend on your birth year; it is 70½ for everyone, even though required minimum distributions start later.

QCD limits for 2026

IRS Notice 2025-67 raised the annual QCD limit from $108,000 to $111,000 per person for 2026, as a cost-of-living adjustment.

Married couples filing jointly can each exclude up to $111,000 from their own IRAs, up to $222,000 combined. Any qualified charitable distribution above the limit is taxed like a normal distribution.

A glass jar partly filled with plain coins next to a brass balance scale with empty pans on a wooden desk, suggesting annual QCD limits.
For 2026, the QCD limit is $111,000 per IRA owner.

Which IRAs are eligible

A traditional IRA or an inherited IRA can be an eligible IRA. For an inherited IRA, the beneficiary must be 70½.

The IRS excludes ongoing SEP and SIMPLE IRAs, meaning those receiving an employer contribution for the year, so inactive SIMPLE IRAs and SEP IRAs can be eligible accounts. Roth IRAs are allowed, but qualified distributions from Roth IRAs are already tax free, so a QCD adds little.

Which qualified charity counts

A qualified charity, or eligible charity, is a qualified charitable organization described in IRC section 170(b)(1)(A), generally a public charity. The statute excludes donor-advised funds and supporting organizations by name. Many private foundations also fall outside it, so ask before giving to private foundations.

The entire donation must be one that would qualify as a tax deduction under section 170, so receiving tickets or other benefits in return from the charitable organization can disqualify it.

Direct transfer from the IRA trustee

A QCD must be a direct transfer: your IRA administrator pays the charity, for example with a check payable to the charity. Confirm the charity’s legal name and mailing address first.

If the check is payable to you and you donate money afterward, it is a taxable distribution, not a QCD.

Two plain envelopes connected by a single red string with a fountain pen on a wooden desk, suggesting a direct transfer from an IRA custodian to a charity.
The IRA trustee must send the money directly to the qualified charity.

Get the charity’s acknowledgment

Pub 590-B requires the same type of acknowledgment from the charity you would need for a charitable contribution deduction. Keep it with your tax records for that tax year.

Qualified charitable distribution vs charitable deduction

Is a QCD better than a charitable deduction? Often. An itemized deduction helps only if you itemize and is subject to percentage-of-income limits. A QCD lowers income directly, which can also affect how much of your Social Security is taxed; see Social Security and IRA withdrawals.

For 2026, the IRS says non-itemizers can take a tax deduction of up to $1,000 for cash gifts ($2,000 if married filing jointly), excluding donor-advised funds. For a larger donation, a QCD avoids the tax hit of adding the gift to income at all.

How a QCD counts toward required minimum distributions

Once required minimum distributions begin at age 73 for a traditional IRA, a QCD can satisfy all or part of the year’s minimum distribution. In the IRS example, a $10,000 RMD and a $5,000 QCD leave $5,000 to withdraw.

That is how a QCD can reduce required minimum distributions that would otherwise be taxable income. Extra QCD dollars do not carry to a later year’s minimum distribution. For how required minimum distributions are figured, see our IRA required minimum distributions guide.

Charitable gift annuity and charitable remainder trusts

A one-time election lets you send up to $55,000 in 2026 to a charitable remainder annuity trust, a charitable remainder unitrust, or a charitable gift annuity funded only by QCDs.

These charitable remainder trusts and annuities pay you income, and a charitable gift annuity must begin fixed payments of 5% or more within one year. Use a tax professional for these charitable vehicles.

A small gift box wrapped in kraft paper and twine beside a short stack of coins and a blank card on a wooden desk, suggesting a charitable giving strategy.
A QCD is one charitable giving strategy among several.

How to report a QCD on your tax return

Your IRA custodian reports the qualified charitable distribution on Form 1099-R for the year it is made. For 2026, code Y for a QCD is optional, so your form may not flag it.

On your tax return, report the full amount on the IRA distribution line and enter zero as taxable if it was all a QCD, as the IRS form instructions direct. File Form 8606 if you have traditional IRA basis and took other distributions, or if the QCD came from a Roth IRA.

Reading glasses resting on a stack of blank paper forms beside a pen under a warm desk lamp, suggesting reporting a QCD on a tax return.
Report the QCD on your tax return; the custodian does not mark it for you.

Common QCD mistakes to avoid

  • Making a donation before you turn 70½.
  • Taking the check yourself instead of a direct transfer.
  • Sending the QCD amount to a donor-advised fund or a supporting organization.
  • Claiming a charitable deduction for the same donation.
  • Forgetting that tax-deductible contributions to a traditional IRA for years you were 70½ or older reduce the amount you can exclude.
  • Assuming a December donation counts if the distribution is made in January; it counts in the calendar year the distribution is made, so a 2026 QCD must be made by December 31, 2026.

What are the disadvantages of a QCD?

A QCD only works for donations from IRA money to eligible charities, and it is capped each year. It cannot move other assets such as stock from a taxable account, and it offers no tax benefits for income outside the IRA.

State tax rules may treat a QCD differently from federal tax rules and tax laws, so confirm your state’s treatment of the income.

Ways to donate money: a QCD as a charitable giving strategy

A qualified charitable distribution (QCD) is a strong charitable giving strategy if you are 70½ or older, give to public charities, and have pre-tax IRA money. Compare it with your retirement tax strategy, and get tax advice from a tax advisor or financial advisor about your tax liability, tax savings, and other tax considerations. Our traditional IRA guide covers how pre-tax savings are taxed.

Under 59½ and need IRA cash instead? Read our IRA early withdrawal exceptions and 72(t) SEPP guides. For what remains, see IRA beneficiary designation, inherited IRA rules, and, after a divorce, QDRO and IRA divorce.

The bottom line

A qualified charitable distribution (QCD) turns a taxable IRA withdrawal into a tax-free donation, up to $111,000 per person in 2026. Follow the QCD rules, keep the charity’s acknowledgment, and ask a tax advisor before a large charitable distribution.

Written by Tim Schmidt and reviewed for tax and account accuracy by Sean Webster, CPA. Last reviewed November 10, 2026 (America/New_York). This guide is for general education, not tax, legal, or investment advice, and not a recommendation to take a distribution or make a gift. IRAInvesting.com is not a custodian, broker-dealer, tax preparer, or investment adviser. Talk with a licensed tax professional before you act, and confirm current limits on IRS.gov. Investing involves risk, including possible loss of principal.