What is a qualified charitable distribution?
Check whether the rules fit your situation, then review the worked example, requirements and records.
Generally available at age 70½ and older
Reviewed by Ebot Mbi, CPA, EA · Last reviewed · Law and figures current as of September 17, 2026
How it works
Check eligibility
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Work through the numbers
Use the stated assumptions and compare the tax result with the cost and trade-offs.
Document and file
Keep contemporaneous records. Your external tax preparer handles return preparation and filing; this is not a tax-preparation service.
Which sounds like you?
Terms used in this guide
A deduction reduces taxable income; a credit reduces calculated tax; deferral changes when tax is due.
The Internal Revenue Code (IRC) is federal tax law; Treasury regulations explain its rules; IRS publications explain the agency's guidance.
- exclusion:
- an amount the applicable law permits you to leave out of taxable income.
- Roth:
- a retirement account type with after-tax contributions and conditional tax treatment for withdrawals.
- IRA:
- an individual retirement arrangement.
- AGI:
- adjusted gross income, an income measure used to apply many tax limits.
In brief
A qualified charitable distribution under IRC §408(d)(8) is a transfer from your IRA directly to a qualifying charity after you reach age 70½. Up to $111,000 for 2026 is excluded from income. Once required minimum distributions begin, generally at age 73, the transfer counts toward them.
Donor-advised funds, supporting organizations, and most private foundations cannot receive one, and there is no charitable deduction.
Key takeaways
- You must be at least 70½ on the date of the distribution.
- The 2026 limit is $111,000 per IRA owner, per IRS Notice 2025-67.
- A QCD counts toward your required minimum distribution only for years in which one is required, generally starting at age 73.
- The exclusion is reduced by deductible IRA contributions made for years you were 70½ or older.
- A one-time QCD of up to $55,000 in 2026 can fund certain split-interest entities.
What it is
A qualified charitable distribution, or QCD, lets an IRA owner send money from a traditional IRA straight to a charity without including it in income. Because the amount never enters adjusted gross income, it can help with income-based items such as the taxable portion of Social Security benefits and Medicare income-related premium adjustments, which use income from two years earlier.
A QCD is often more valuable than taking a distribution and deducting the gift, especially for retirees who take the standard deduction or whose gifts would be reduced by the 2026 0.5% floor.
What the law says
IRC §408(d)(8)(A) excludes from gross income qualified charitable distributions up to an annual limit, which is indexed for inflation; Notice 2025-67 sets it at $111,000 for 2026. Section 408(d)(8)(B) defines a qualified charitable distribution as a distribution from an IRA, other than an ongoing SEP or SIMPLE IRA, made directly by the trustee to a qualifying organization on or after the date the owner reaches age 70½.
The distribution must otherwise be deductible under §170, disregarding the percentage limits, which means you cannot receive a benefit in return. Organizations described in §170(b)(1)(A) qualify, but donor-advised funds and supporting organizations do not. Private foundations generally do not, except for certain operating and conduit foundations.
Under §408(d)(8)(A), the excludable amount is reduced by the total of IRA deductions you took for years you were 70½ or older that have not already reduced an earlier QCD.
The Required Minimum Distribution rules in IRC §401(a)(9), which apply to IRAs through §408(a)(6), set the age when distributions must begin: 73 for people born from 1951 through 1959 and 75 for people born in 1960 or later.
Requirements and tests
For a valid QCD:
- You are at least 70½ on the distribution date; reaching 70½ later in the year is not enough.
- The check or transfer goes directly from the IRA trustee to the charity, or a check payable to the charity is delivered by you.
- The IRA is a traditional, inherited, or inactive SEP or SIMPLE IRA; employer plans such as 401(k)s do not qualify.
- The charity is a qualifying public charity, not a donor-advised fund or supporting organization.
- You obtain the same written acknowledgment required for a deductible gift, stating that you received nothing in return.
- You report the gross distribution on your return and mark the QCD portion as nontaxable, because Form 1099-R does not identify it.
How it works
You ask your IRA custodian to send a distribution to the charity. The amount is excluded from income, up to the annual limit. If you are subject to a required minimum distribution that year, the QCD counts toward it, so the part of your required distribution you give away is not taxed.
Distributions taken earlier in the year count toward the requirement first, so make the QCD before other withdrawals if you want it to cover the required amount.
Once in a lifetime, you may also use a QCD of up to $55,000 in 2026 to fund a charitable remainder annuity trust, charitable remainder unitrust, or charitable gift annuity that meets the statutory requirements.
Each spouse who is at least 70½ can make QCDs up to the annual limit from his or her own IRA. Inherited IRA beneficiaries who are at least 70½ can also use QCDs.
Assumptions: Tax year 2026; single filer, age 75; Texas resident.; Taxable income before the required distribution, after all deductions: $60,000.; Required minimum distribution for 2026: $20,000; the owner intends to give $20,000 to a public charity.; The owner takes the standard deduction; the non-itemizer deduction of up to $1,000 applies to a direct cash gift but not to a QCD.; 2026 single brackets from Rev. Proc. 2025-32; effects on Social Security taxation, the senior deduction, and Medicare premiums are not computed.
| Option 1: take the $20,000 distribution, tax at 22% | $4,400 |
|---|---|
| Option 1: non-itemizer deduction on the $20,000 cash gift ($1,000 × 22%) | −$220 |
| Option 1: net added federal tax | $4,180 |
| Option 2: $20,000 QCD, added taxable income | $0 |
| Option 2: added federal tax | $0 |
Using a QCD avoids about $4,180 of federal tax in this example and keeps $20,000 out of AGI.
Illustration only; not a projection of your results.
Risks and IRS scrutiny
The most common problems are distributions made before age 70½, checks paid to the IRA owner rather than the charity, gifts to donor-advised funds, missing acknowledgments, and failing to mark the distribution as a QCD on the return. The IRS matches Form 1099-R amounts to returns, so an unreported QCD can generate a notice proposing tax on the full distribution.
Keep the charity's acknowledgment with your tax records, because the IRS can ask you to show that nothing was received in return.
Who it is not for
A QCD is not available if you are under 70½, if the money is in a 401(k) or active SEP or SIMPLE IRA, or if you want the gift to go to a donor-advised fund or private foundation. It also does not produce a charitable deduction on top of the exclusion.
How ebotCPA helps
We coordinate QCD amounts with your required minimum distributions, Medicare premium thresholds, and other giving, and we make sure the distribution is reported correctly on your return.
Book a $497 Case Analysis to have Ebot Mbi, CPA, EA review your facts before you act.
Frequently asked questions
What is the QCD limit for 2026?
$111,000 per IRA owner, under IRS Notice 2025-67. Spouses each have their own limit from their own IRAs.
Can I make a QCD before age 73?
Yes, starting at age 70½, but it counts toward a required minimum distribution only in years one is required, generally from age 73.
Can a QCD go to a donor-advised fund?
No. IRC §408(d)(8) excludes donor-advised funds and supporting organizations.
How do I report a QCD on my tax return?
Report the total distribution, subtract the QCD amount when reporting the taxable amount, and label it QCD, because Form 1099-R does not identify it.