QCD Calculator — Qualified Charitable Distribution

What Is a Qualified Charitable Distribution?

A Qualified Charitable Distribution (QCD) is a direct transfer from your traditional IRA to a qualified 501(c)(3) charity. For taxpayers aged 70½ or older, QCDs up to $105,000 per year (2026 limit, indexed for inflation under SECURE 2.0) are excluded from taxable income. This provides a meaningful tax benefit even if you do not itemize deductions — the distribution never appears as gross income on your federal return. QCDs can also satisfy all or part of your Required Minimum Distribution (RMD) for the year, making them a powerful tool for retirees who want to give charitably while minimizing their tax burden. QCDs are not available from employer-sponsored plans (401k, 403b) — only from IRAs (traditional, inherited, and inactive SEP/SIMPLE IRAs). Source: IRS Publication 590-B. Last updated May 2026.

QCD vs Regular Donation — Tax Comparison

Without a QCD, a retiree must take an RMD (fully taxable as ordinary income), then donate from after-tax funds. A charitable deduction is only available if itemizing — and since the 2026 standard deduction is $15,700 (single) or $31,400 (married filing jointly), most retirees take the standard deduction and get no charitable deduction at all. With a QCD, the distribution goes directly to charity, is excluded from gross income, satisfies the RMD, and delivers a tax benefit regardless of whether the taxpayer itemizes. Example: a retiree in the 22% bracket with a $25,000 RMD who donates $15,000 to charity via QCD has only $10,000 of taxable RMD income. The same approach without a QCD and with only the standard deduction yields $25,000 taxable income — a $15,000 income difference worth $3,300 in federal tax. QCDs also reduce Modified AGI (MAGI), which governs Medicare Part B/D IRMAA surcharges, Social Security taxation (up to 85% of benefits), and eligibility for other income-based programs. Source: IRS RMD FAQ.

QCD Rules and Limitations for 2026

Key QCD rules to know before using this calculator: you must be age 70½ or older on the exact date of the distribution — the six-month threshold is based on your birth date, not your birthday year. The annual limit is $105,000 per individual (inflation-adjusted from the original $100,000 base). Married couples can each contribute up to $105,000 from their own IRAs. The QCD must be paid directly from the IRA custodian to the charity — you cannot withdraw funds first. The charity must be a qualifying 501(c)(3) public charity; donor-advised funds and private foundations do not qualify. Under SECURE 2.0, a one-time lifetime QCD of up to $53,000 to a charitable remainder trust or charitable gift annuity is permitted (separate from the annual $105,000 limit). RMDs begin at age 73 under SECURE 2.0, but QCDs can start at 70½, giving a 2.5-year window to reduce IRA balances tax-free before RMDs even begin. Source: IRS SECURE 2.0 RMD and QCD changes.

How QCDs Reduce Medicare IRMAA Surcharges

Medicare Income-Related Monthly Adjustment Amounts (IRMAA) increase Part B and Part D premiums based on your Modified Adjusted Gross Income (MAGI) from two years prior. In 2026, the base Part B premium is $185/month, but IRMAA surcharges can push it to $628/month for high-income beneficiaries. Because QCDs are excluded from gross income, they directly reduce MAGI. A retiree with $210,000 MAGI who does a $15,000 QCD drops to $195,000 — potentially crossing below the $212,000 IRMAA tier and saving $1,400+ in annual Medicare premiums. Combined with the direct income tax savings, QCDs often have a higher effective return than any investment. Use our Medicare IRMAA Calculator to quantify the premium savings separately.