What is a qualified charitable distribution (QCD)?

Under the SECURE 2.0 Act, IRA owners age 70½ and older can direct up to an annual limit to charity through a QCD. For 2026, that limit is $111,000 per individual, up from $108,000 in 2025, and it is indexed for inflation each year (see IRS Notice 2025-67 and IRS Publication 590-B for the current figure). If both spouses each own an IRA and each qualify, each may make QCDs up to their own $111,000 limit. The distribution must go directly from the IRA custodian to the eligible charity. Funds that pass through your hands first do not qualify, and the QCD cannot also be claimed as a charitable deduction.

For anyone subject to RMDs, a qualifying QCD can count toward satisfying that year's required distribution, but it is excluded from adjusted gross income rather than added to income and then deducted. That distinction may help keep income below thresholds tied to Medicare surcharges (IRMAA) or the net investment income tax.

Eligible charities must be qualified 501(c)(3) organizations. Donor-advised funds and private foundations generally do not qualify to receive a QCD, so the gift needs to go to an operating charity directly. A one-time split-interest election also allows up to $55,000 (for 2026) of the annual limit to fund a charitable gift annuity or charitable remainder trust, within the overall $111,000 limit.

For charitably inclined retirees who do not need their full RMD for living expenses, a QCD can be one of the more tax-efficient ways to give, since it lowers taxable income even for those who no longer itemize deductions, which may be particularly valuable for retirees whose RMDs would otherwise push them into a higher IRMAA bracket.