Qualified Charitable Distribution (QCD) 2027 Calculator
Calculate the 2027 QCD up to $108,000 from your IRA. See RMD offset, MAGI reduction, federal/state tax savings, and Medicare IRMAA impact. Free, private QCD planning tool.
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What is a Qualified Charitable Distribution (QCD)?
A Qualified Charitable Distribution (QCD) is a direct transfer from your traditional IRA to a qualified 501(c)(3) charity that satisfies your Required Minimum Distribution (RMD) without being added to your taxable income. QCDs were made permanent by the PATH Act of 2015 and are available to IRA owners age 70½ or older. The 2027 annual limit is approximately $108,000 per individual, inflation-adjusted from the original $100,000.
The QCD's killer feature is that it reduces your gross income — not just your itemized deductions. This is critical because: (1) most retirees take the standard deduction ($15,750 single / $31,500 MFJ in 2027), so traditional charitable deductions provide no benefit, and (2) gross income reduction lowers MAGI, which controls Social Security taxability, Medicare IRMAA tiers, and net investment income tax thresholds.
How a QCD saves Medicare IRMAA premiums
Medicare IRMAA (Income-Related Monthly Adjustment Amount) uses your MAGI from 2 years prior. A 2027 MAGI just $1 over a tier threshold costs $876-$5,500/year in extra Medicare premiums per spouse in 2029. A QCD reduces 2027 MAGI dollar-for-dollar — so a $20,000 QCD that drops you from tier 2 to tier 1 saves roughly $1,750/year per spouse, or $3,500 for a couple. Over 5 years of lower IRMAA brackets, that's $17,500+ in addition to the income tax saved.
Compare this to a regular charitable deduction: it goes on Schedule A, which you only use if your itemized deductions exceed the standard deduction. For most retirees with paid-off mortgages, modest medical expenses, and $10k SALT cap, itemizing requires $15,000+ in charitable gifts just to break even with the standard deduction. The QCD is "above the line" — you get it regardless.
QCDs satisfy your RMD — and can exceed it
A QCD counts dollar-for-dollar toward your annual RMD. If your 2027 RMD is $30,000 and you make a $20,000 QCD plus $10,000 of taxable distribution, the RMD is satisfied and only the $10,000 is taxable. If your QCD ($35,000) exceeds your RMD ($30,000), the entire QCD satisfies the RMD and there's no additional taxable distribution required.
The SECURE 2.0 Act also created a one-time $54,000 "split-interest QCD" — you can use up to this amount one time in your lifetime to fund a Charitable Gift Annuity (CGA) or Charitable Remainder Trust (CRT) that pays you income for life with the remainder to charity. This counts toward the annual $108,000 QCD limit in the year used.
How to use this calculator
Enter your planned QCD amount (max $108,000), your 2027 RMD, your base MAGI before any IRA distributions, filing status, federal marginal bracket, and state rate. The calculator computes: (1) federal + state income tax saved on the QCD amount, (2) how much of your RMD the QCD satisfies, (3) the IRMAA premium savings in 2029 if the QCD drops you to a lower tier, and (4) total combined savings.
Practical workflow: at age 70½+, instead of writing checks to your church/college/hospital from your bank account, have your IRA custodian send the money directly. Tell them in writing: "Make payable to [Charity Name] and mail directly to [address]." The check must be made out to the charity, not to you. Get a written acknowledgment from each charity (required for IRS Pub 526 substantiation). On your 1040, report the QCD on line 4b with "QCD" notation; the gross distribution shows on 4a but only the non-QCD portion is taxable.
Source: IRS Pub 590-B (IRA distributions), IRC Section 408(d)(8) (QCD rules), and SECURE 2.0 Act of 2022 — updated May 2026.