QCD 2027 Qualified Charitable Distribution Calculator
Estimate the 2027 QCD tax savings — direct IRA-to-charity transfers that satisfy your RMD without raising AGI.
What Is a 2027 QCD?
A Qualified Charitable Distribution lets IRA owners age 70½+ transfer up to a projected $114,000 in 2027 (the confirmed 2026 limit is $111,000, up from $108,000 in 2025) directly from their IRA to a qualifying public charity. The QCD: (1) satisfies your Required Minimum Distribution dollar-for-dollar, (2) is EXCLUDED from gross income (never appears on your 1040), (3) doesn't require itemizing to benefit. Source: IRC §408(d)(8), SECURE 2.0 §307 (indexing). Last updated: May 2026.
Why QCD Beats a Regular Charitable Deduction
If you take the RMD as income and then donate the same amount, that income still hits your AGI — pushing up Medicare IRMAA brackets, taxability of Social Security, and other AGI-based costs. QCD bypasses ALL of these. You save federal + state tax PLUS avoid the cascading AGI effects of higher RMD income.
Mechanics: Trustee-to-Charity Transfer
Your IRA custodian must transfer funds DIRECTLY to the qualifying charity — checks payable to the charity (even if mailed to you) qualify. Funds touching your personal account FIRST disqualify the QCD. Most major brokers (Fidelity, Schwab, Vanguard) offer QCD-specific check or wire request forms.
State Tax and IRMAA: The Two Savings Most QCD Calculators Miss
A QCD does not only save federal tax. Because the distribution never enters your adjusted gross income, it is also invisible to the roughly 40 states that tax IRA withdrawals — enter your state marginal rate above and the calculator adds that saving to the federal one. On a $40,000 QCD, a retiree in the 24% federal bracket with a 5% state rate saves $9,600 federally plus $2,000 in state tax: $11,600 total, so the net cash cost of the gift is $28,400 rather than the full $40,000. The second saving is Medicare IRMAA, which is a cliff rather than a slope: crossing a threshold by a single dollar triggers the full surcharge for the whole year. The 2026 thresholds start at $109,000 MAGI single and $218,000 married filing jointly, and keeping an RMD out of income is often what keeps a retiree under the line. Pick your filing status above so the tool checks against the right set. Note the two-year lookback: your 2026 premium is set from 2024 income, so a QCD taken now protects a premium two years out. Sources: IRS Publication 590-B (IRA distributions) and CMS 2026 Medicare premiums fact sheet. Updated 2026-09-10.
SECURE 2.0 Split-Interest QCD
Under SECURE 2.0, you can now make a ONE-TIME QCD of up to a projected $57,000 in 2027 (the confirmed 2026 figure is $55,000) to a Charitable Gift Annuity, Charitable Remainder Unitrust, or Charitable Remainder Annuity Trust. This split-interest QCD provides lifetime income to you AND a charitable remainder, all from the IRA without creating gross income.
Frequently Asked Questions
What's the 2027 QCD limit?
Projected at about $114,000 per person for 2027. The confirmed figures are $105,000 for 2024, $108,000 for 2025 and $111,000 for 2026 — SECURE 2.0 indexes the cap to inflation each year and rounds to the nearest $1,000, so the 2027 number is only an estimate until the IRS publishes it in late 2026. For married couples each with their own IRA, both spouses can make separate QCDs — combined $216,000 maximum. Final IRS figure publishes October 2026.
What age do I need to be for a QCD in 2027?
70½ or older on the date of the distribution. Note: this is the QCD age, NOT the RMD age. SECURE 2.0 pushed RMD age to 73 (and eventually 75 by 2033), but the QCD eligibility age remains at 70½. So you can do QCDs for 2-3 years BEFORE RMDs even begin.
Does a QCD satisfy my RMD?
Yes — dollar for dollar, up to the QCD amount. If your 2027 RMD is $40,000 and you make a $40,000 QCD, your RMD is fully satisfied with $0 of taxable income. If your RMD is $40,000 and you QCD only $25,000, you still owe income tax on the remaining $15,000.
Which charities qualify for QCDs?
501(c)(3) public charities only. NOT qualifying: Donor-Advised Funds, private foundations, supporting organizations, or split-interest trusts (with the SECURE 2.0 one-time exception for CGAs/CRUTs/CRATs, $55,000 in 2026 and a projected $57,000 in 2027). This excludes DAFs from QCD — a major restriction.
Can I do a QCD from my 401(k)?
No. QCDs work only from IRAs (Traditional, Rollover, Inherited, SEP IRA if not active, SIMPLE IRA if not active). To use 401(k) funds, first do a rollover to a Traditional IRA, then make the QCD. Time the rollover at least one month before the QCD to avoid issues.
Does QCD reduce my Medicare IRMAA bracket?
Often yes. RMDs taken as income inflate MAGI, which determines IRMAA Part B/D surcharges (2-year lookback). A $40K QCD instead of a $40K RMD distribution can keep you in a lower IRMAA bracket — saving $2,000-$4,000+/year in Medicare premiums on top of the income tax savings.
Does a QCD save state income tax as well as federal?
In most states, yes. Because the distribution never enters your adjusted gross income, it is invisible to any state that starts its calculation from federal AGI and taxes IRA withdrawals. Enter your state marginal rate in the calculator above and it adds that saving to the federal figure. On a $40,000 QCD at a 24% federal and 5% state rate the combined saving is $11,600, so the gift costs you $28,400 in cash rather than $40,000. Leave the state rate at 0 if you live in a state with no income tax, or one that exempts retirement income.
What are the 2026 IRMAA thresholds a QCD helps me stay under?
IRMAA starts at $109,000 MAGI for single filers and $218,000 for married filing jointly in 2026, with further tiers at $137,000 / $171,000 / $214,000 / $321,000 single (double those figures when filing jointly). It is a cliff, not a slope: one dollar over a threshold triggers the full surcharge for the entire year. Because Medicare uses a two-year lookback, your 2026 premium is set from your 2024 income — so a QCD you make today is protecting a premium two years out. Set the filing status field above so the calculator checks the correct set of thresholds.