Qualified Charitable Distributions (QCDs): What They Are and When They Make Sense

Updated: September 21 2026

Takeaways

• Individuals age 70½ or older can send up to $111,000 in 2026 from an IRA directly to a qualified charity, and the amount is excluded from taxable income.
• A QCD can count toward your required minimum distribution (RMD), which begins at age 73 for most people today and at 75 for anyone born in 1960 or later.
• Because a QCD is excluded from income rather than deducted, it works whether or not you itemize. The 2026 standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.
• The money has to go straight from the IRA custodian to the charity. Donor-advised funds and private foundations do not qualify.
• QCD decisions work best when your giving goals and your retirement income plan are reviewed together, which is how our Personal CFO team approaches them.

A qualified charitable distribution (QCD) earns its tax benefit without a deduction. The money goes from your IRA straight to a charity and never appears on your return as income. That matters more than it used to. Under the 2026 standard deduction of $16,100 for single filers and $32,200 for married couples filing jointly, a check written from a bank account often does little for the tax return.

Conventional wisdom treats charitable giving as a deduction, which helps only if you itemize, and many retirees no longer do. Giving from the IRA works around that limit. At Brighton Jones, we look at QCDs alongside your required minimum distributions and your Medicare premiums, because the right answer depends on how those pieces interact with the causes you care about. Below, we cover who qualifies and how the 2026 limits work. We also look at when a QCD deserves a closer look.

Why a Qualified Charitable Distribution can work better than writing a check

A regular charitable gift is deducted on Schedule A, so it lowers your tax only if your itemized deductions exceed the standard deduction. Two 2026 changes are worth knowing. Itemizers now face a floor of 0.5% of AGI before charitable gifts count, and taxpayers who do not itemize can deduct up to $1,000 ($2,000 for married couples filing jointly) in cash gifts to qualifying charities. Gifts to donor-advised funds are excluded from that new deduction.

A QCD sidesteps the question. Because the amount is excluded from income rather than deducted, it lowers your adjusted gross income (AGI) whether or not you itemize. It also sits outside the AGI-based limits that cap regular charitable deductions, which usually run between 30% and 60% of AGI depending on the gift. For comparison, the new non-itemizer deduction tops out at $1,000 or $2,000, while a QCD can reach $111,000 per person in 2026. A gift made this way cannot also be claimed as a deduction, so the two tools do not stack on the same dollars.

Thinking through qualified charitable distributions? Let’s talk about your complete financial picture. Schedule a complimentary intro call.

Who Qualifies for a QCD from an IRA: 2026 rules and limits

You need to be at least 70½ on the date of the distribution. That is earlier than the age when required minimum distributions begin. The Secure 2.0 Act moved the RMD age to 73, and it rises to 75 for anyone born in 1960 or later, but the QCD age stayed at 70½. That leaves a window of a few years when you can give from your IRA before a required minimum distribution applies.

Here are the rules that matter most:

• The limit. $111,000 per person in 2026, up from $108,000 in 2025. The limit is indexed for inflation each year. Married couples who each have their own IRA can each make a QCD, for up to $222,000 combined.
• Eligible accounts. Traditional IRAs and inherited IRAs (where the beneficiary is at least 70½) qualify, along with inactive SEP and SIMPLE IRAs. Employer plans such as 401(k)s and 403(b)s do not, so those balances would need to be rolled into an IRA first.
• Eligible charities. Most 501(c)(3) public charities can receive one. Donor-advised funds and private foundations cannot receive one, and neither can certain supporting organizations.
• A direct transfer. The money has to move from your IRA custodian to the charity. If it lands in your account first, it is a taxable distribution and does not qualify.
• A one-time split-interest option. In 2026, up to $55,000 of the annual limit can fund a charitable gift annuity or certain charitable trusts through a one-time election. The rules are specific, so this one deserves a conversation with your tax advisor first.

Your IRA custodian reports the distribution on Form 1099-R like any other withdrawal, so you must note the charitable amount when preparing your return. It also helps to keep the charity’s written acknowledgment with your tax records. Because the 1099-R does not flag the gift as charitable, confirm with your tax preparer that the QCD is not reported as fully taxable income.

Hypothetical example: A single filer, age 76, has a $40,000 required minimum distribution and gives $10,000 a year to charities. If the full RMD is taken as cash and the gifts come from a bank account, the return includes $40,000 of IRA income. If $10,000 of the RMD goes directly to those charities as a QCD, the return includes $30,000 of IRA income, and the charities receive the same gifts either way. This example is for illustration only and ignores other income and deductions. It does not predict a result for any individual. Actual outcomes depend on your income and tax situation, and tax law can change.

How a QCD fits with your RMD and medicare premiums

A QCD can count toward your RMD for the year, up to the full RMD amount. Order matters here. An RMD you have already taken as cash cannot be turned into a QCD afterward, so some households ask their custodian to process the gift first. Amounts above the RMD still go to charity, but they do not offset future years’ RMDs.

Giving from the IRA also shrinks the balance that future RMDs are calculated on, which may lower those distributions over time. The effect depends on your age and on how the account performs.

Lower AGI can reach beyond the tax bill. It can affect how much of your Social Security benefit is taxable and whether you cross the income thresholds that add surcharges to Medicare Part B and Part D premiums (known as IRMAA). Medicare looks back two years, so income on this year’s return can shape premiums two years from now.

Washington residents have one more question to raise with their tax advisor. The state’s new Millionaires’ Tax includes a deduction of up to $100,000 for gifts to Washington-based charities, and how that deduction interacts with QCDs deserves a closer look before you plan gifts. Our article on Washington’s new tax and giving has the details.

QCD vs. Donor-Advised Fund: Matching the gift to what you want to support

A QCD suits a giver who already knows which charities to support and is ready to give now. The transfer is final. Once the money leaves the IRA, there is no room to reconsider and no way to spread grants over several years.

A donor-advised fund works differently. It cannot receive one, but it can hold cash or appreciated assets contributed in a high-income year and grant to charities on your schedule. Some households use a QCD for annual gifts and a donor-advised fund for larger or more flexible giving. Others use only one.

The larger question is what the giving is for. What we call Wealth Alignment™ starts with intention: identifying what matters most to you, then applying attention to it. For some people, that means a steady annual gift to organizations they have supported for years. For others, it means building a giving plan with their children or grandchildren. A QCD fits the first well. The second may call for a different structure.

The transfer also moves money out of your retirement income, so it helps to check that the giving fits with how you want the next several years to look. If you are not sure which charities to support, our philanthropic advisory team can research and identify organizations that line up with your values and passions.

Some households also consider naming a charity as beneficiary of part of the IRA. Charities do not pay income tax on inherited IRA dollars, while heirs usually do, so a pre-tax IRA is often one of the first assets families weigh when deciding what to leave to charity and what to leave to children. That is a separate decision from a QCD with its own tradeoffs. It belongs in the same conversation as your estate plan.

How to make a QCD: The steps and the questions to ask first

Once you decide, the mechanics are straightforward. A QCD usually moves through these steps:

1. Confirm that you are at least 70½ and that the money sits in an eligible IRA.
2. Choose the charity and confirm it is a 501(c)(3) that can receive one, meaning not a donor-advised fund or private foundation.
3. Ask your IRA custodian to send the distribution directly to the charity. Some custodians issue a check payable to the charity and mail it to you to deliver, which still works as long as the charity is the payee.
4. Allow time for processing. The transfer has to be completed by December 31 to count for that year, and year-end requests can back up.
5. Keep the charity’s written acknowledgment and make sure it is noted on your tax return.

Before starting, these questions can help clarify the decision:

• Do I need my full RMD to cover living expenses this year?
• Which organizations do I already support, and how much do I give each year?
• Would I rather give now or keep flexibility to decide later?
• How close is my income to a Medicare premium threshold?
• Have I already taken part of this year’s RMD?

Why QCDs work better when they connect to the full picture

A QCD looks like a single transaction, but it touches several parts of a plan at once. The IRA balance goes down and taxable income changes. Medicare thresholds may move, and a charity you care about receives a gift.

Brighton Jones’ Personal CFO approach gives your planner direct access to our in-house tax team and our philanthropic advisors, so the person who sees your RMD is in the same conversation as the person who knows what you want your giving to accomplish. That is what we mean by Beyond the Balance Sheet: the conversation starts with what you want the money to do, and the tax rules come second.

FAQs

What is a qualified charitable distribution?

A qualified charitable distribution is a direct transfer from an IRA to a qualified charity by an owner age 70½ or older. The amount is excluded from taxable income rather than deducted, and it can count toward the required minimum distribution. In 2026, the limit is $111,000 per person.

Can a QCD satisfy my required minimum distribution?

Yes. A QCD can count toward your RMD for the year, up to the full RMD amount, as long as it is completed by December 31. You can’t reclassify an RMD already taken as cash afterward. Amounts above your RMD still go to charity but do not offset future years’ RMDs.

Can I make a QCD to a donor-advised fund?

No. QCDs cannot go to donor-advised funds or private foundations. They must move directly from the IRA custodian to an eligible 501(c)(3) charity. An IRA distribution used to fund a donor-advised fund is usually taxable, though a charitable deduction may apply if you itemize.

Is there a limit on QCDs?

Yes. The 2026 limit is $111,000 per person, up from $108,000 in 2025. It is adjusted for inflation each year. Married couples who each have their own IRA can each make a QCD. A one-time election of up to $55,000 for certain split-interest gifts counts toward that annual limit.

Do I have to be 73 to make a QCD?

No. QCDs are available starting at age 70½, which is earlier than the RMD age of 73 (75 for anyone born in 1960 or later). A QCD made before RMDs begin can reduce your IRA balance, although it does not count toward an RMD until one applies to you.

About the Author: Kaycee K. LeCong, CFP®, is Managing Director of Family Office at Brighton Jones. Kaycee writes about charitable giving and retirement income and helps families fit those decisions into their Personal CFO plan.

Standard Disclosure: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Brighton Jones, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. To the extent that you have any questions regarding the applicability of any specific issue discussed above to your individual situation, you are encouraged to consult with the professional advisor of your choosing.