QCD tax-savings calculator
A qualified charitable distribution lets you give directly from your IRA after age 70½ — and that distribution is excluded from your taxable income entirely. See how much your giving actually costs after the tax savings.
2026 limit: $111,000 per person — IRS Rev. Proc. 2025-32
Why the standard deduction makes QCDs so powerful
The conventional path for charitable giving in retirement: take a required minimum distribution as taxable income, donate the cash, and deduct the donation on Schedule A. That works — but only if you itemize. In 2026, the standard deduction is $16,100 for single filers and $32,200 for married filing jointly.1 Retirees 65 or older can add $2,050–$3,300 in the existing age-based deduction, plus a new $6,000 senior bonus deduction under the One Big Beautiful Bill Act (2025–2028, phases out above $75K MAGI for single filers).2
The result: most retirees are comfortably above the itemization threshold without any charitable giving. A cash donation adds nothing to their return — the standard deduction is claimed whether they give or not.
A QCD sidesteps this entirely. The distribution is excluded from gross income before it appears on the return — no itemization needed, no threshold to clear. Every dollar given reduces taxable income at your marginal rate.
| Take RMD, then donate cash | QCD directly to charity | |
|---|---|---|
| Distribution taxable? | Yes — added to income | No — excluded from income |
| Deduction available? | Only if you itemize past the standard deduction | N/A — income never recognized |
| Charity receives | Full amount | Full amount |
| Your income tax on the gift | Marginal rate × amount (if standard deduction filer) | $0 |
The Medicare multiplier
Income on your tax return also drives Medicare surcharges. IRMAA — the income-related monthly adjustment amount — adds to your Part B premium when your MAGI exceeds certain thresholds. In 2026, the first threshold is $109,000 for single filers ($218,000 for married filing jointly), and crossing it costs an extra $974 per year in Medicare premiums.3 Additional tiers step the surcharge higher.
Because a QCD is excluded from MAGI, it can hold you below a threshold — or move you below one you're currently in. A $15,000 QCD that keeps a single filer's MAGI at $104,000 instead of $119,000 saves $974 in Part B premiums on top of the federal income tax savings. This layered benefit is unique to QCDs; a cash donation, even with an itemized deduction, does not reduce MAGI the same way.
QCD eligibility rules
- Age: Must be 70½ at the time of distribution — not 73 (the RMD start age for most accounts under SECURE 2.0). You can begin QCDs before RMDs are required.
- Account: Traditional IRA, rollover IRA, or inherited IRA. Not 401(k), 403(b), or TSP — but rolling those funds to a traditional IRA first makes them QCD-eligible.
- Annual limit: $111,000 per person in 2026, indexed for inflation.4 A married couple can give $222,000 in QCDs from their respective IRAs in a single year.
- Direct transfer: Must go from your IRA custodian directly to the charity — check payable to the charity, not to you. If you receive the funds first, it becomes a taxable distribution.
- Eligible charities: 501(c)(3) public charities — churches, schools, food banks, most ministries. Donor-advised funds do not qualify. Private foundations do not qualify.
- RMD credit: Counts dollar-for-dollar toward your required minimum distribution for the year.
QCDs vs. donor-advised funds — sequencing your generosity
DAFs and QCDs are complementary, not competing:
| QCD from IRA | Donor-advised fund | |
|---|---|---|
| Tax benefit | Income exclusion — works even with standard deduction | Itemized deduction — requires itemizing to help |
| Source of funds | Pre-tax IRA money | Cash, appreciated stock, or other assets |
| Timing | Give and distribute to charity in the same year | Contribute now, grant to charities over years |
| Best use | Annual tithe or pledge; satisfying RMD obligation | Bunching deductions; giving appreciated stock |
A common stewardship strategy: use QCDs for the ongoing tithe and church pledge (from the IRA that would be taxed at RMD anyway), and fund a DAF with appreciated stock in high-income years when itemizing makes the deduction count. A faith-aligned advisor can map out the sequencing for your specific asset mix.
Frequently asked questions
What is a qualified charitable distribution?
A direct transfer from a traditional IRA to a qualifying 501(c)(3) charity, excluded from taxable income. Not deducted — excluded. The 2026 limit is $111,000 per person.
What age do I need to be?
70½ — not 73. Under SECURE 2.0, most people don’t face required minimum distributions until 73, but QCDs can begin at 70½, more than two years before RMDs start.
Can a QCD go to my church?
Yes. Churches with 501(c)(3) status — virtually all of them — qualify. The distribution cannot go to a donor-advised fund, a private foundation, or directly to an individual, even to cover medical or educational costs.
Does the QCD satisfy my RMD?
Dollar-for-dollar. If your RMD is $12,000 and you do a $12,000 QCD to your church, you’ve satisfied the entire RMD with zero taxable IRA income for the year.
Can both spouses make QCDs in the same year?
Yes, independently, each from their own IRA, each up to $111,000. A couple can give $222,000 in QCDs in a single year.
What if I’m still working at 70½?
QCDs are allowed regardless of employment status. If you’re still contributing to a traditional IRA, the deductibility of those contributions may be limited by income — but that doesn’t affect QCD eligibility.
Sources
- IRS: 2026 tax inflation adjustments — standard deduction $16,100 single / $32,200 MFJ
- Kiplinger: New $6,000 Senior Bonus Deduction — how it works under OBBBA
- Kiplinger: 2026 IRMAA brackets, Medicare Part B premiums and surcharges
- IRS Rev. Proc. 2025-32: 2026 inflation-adjusted limits including QCD ($111,000 per person)
- Fidelity: Qualified Charitable Distributions — eligibility, mechanics, and RMD rules
Tax values verified June 2026. QCD limits and IRMAA brackets are indexed annually; verify with your advisor in future years.
Want to put a QCD strategy in place?
A faith-aligned fee-only advisor can coordinate the QCD paperwork with your IRA custodian, integrate your giving with RMD planning, and pair it with appreciated-stock donations or a donor-advised fund where the math is better. Free introductory conversation, no obligation.