QCD Qualified Charitable Distribution 2027 Calculator
QCD lets IRA owners 70½+ direct up to $108K/yr (2025) to charity tax-free. Unique benefit: counts toward RMD, doesn't raise MAGI, sidesteps SALT cap. Calculate your QCD savings.
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Qualified Charitable Distribution (QCD) is the most tax-efficient charitable giving for IRA owners 70½+. Direct IRA-to-501(c)(3) transfer up to $108,000/year (2025, indexed) satisfies RMD WITHOUT raising AGI. This dodges: federal tax, state tax, IRMAA Medicare surcharge, Social Security taxation, and SALT $10K cap.
Why QCD Beats Cash + Deduction
Cash donation: deduct on Schedule A IF you itemize (only ~10% do post-2017 TCJA). QCD: reduces AGI directly — works whether you itemize or not. AGI reduction cascades into lower IRMAA, less SS taxation, no SALT cap impact, no AMT/NIIT trigger.
2025 Limit and Indexing
2025 limit: $108,000/yr (SECURE 2.0 indexed from $100K). 2026: ~$111K projected. Applies per person — married couples can each QCD up to limit from their own IRAs ($216K combined). Roth IRA QCD generally unnecessary (already tax-free).
Implementation Mechanics
Contact IRA custodian. Request check made directly to charity (you cannot touch the funds). Get acknowledgment letter from charity. Report on Form 1040 line 4a (full distribution), 4b (taxable — zero for QCD portion). Custodian sends 1099-R showing full distribution; you handle the QCD reporting.
IRMAA and SS Impact
$30K QCD reduces AGI by $30K. If that crosses IRMAA tier (e.g., $204K MFJ Tier 1 threshold), saves $1,200-$1,800/yr Medicare premium for 2 years. Also reduces Social Security tax bracket from 85% taxable to 50% or 0%, sometimes worth thousands.
Last updated May 2026. Sources: IRS QCD Rules, Fidelity QCD Guide.