Qualified Charitable Distribution (QCD)

Donate up to $108K/yr (2026 limit) directly from your IRA to charity — counts toward your RMD but skips federal AND state tax. The most tax-efficient way to give for retirees 70½+.

📖 About this tool

What it does

Compares charitable giving strategies for retirees: cash donation with standard deduction, cash with itemizing, and Qualified Charitable Distribution (donating directly from IRA, bypassing AGI). Includes the 2026 \$108K cap and age 70½ eligibility check.

Who this helps

Anyone 70½+ with charitable intent and a Traditional IRA RMD. QCD is often the most tax-efficient way to give — bypassing AGI helps with Medicare IRMAA, SS taxability, and the 7.5%-of-AGI medical deduction floor.

How to use it

  1. Enter your age and filing status.
  2. Enter your RMD amount and how much you'd donate.
  3. Enter your federal marginal bracket and state rate.
  4. Tell the tool whether you take the standard deduction or itemize.
  5. Read the three-strategy comparison table — QCD usually wins, especially for standard-deduction filers.

What it doesn't do

Doesn't model the AGI side effects in dollars (IRMAA tier shift, SS taxability change). Doesn't apply to non-IRA accounts — QCD is IRA-only.

Your Situation

Eligibility

QCDs are available at age 70½ (lower than RMD age of 73/75). 2026 annual cap: $108,000 per person.

RMD & Giving

QCD counts toward your RMD up to the donation amount. If RMD > donation, you still take the rest as a taxable distribution.

Tax Brackets

If you take the standard deduction (most retirees do post-TCJA), traditional cash donations don't reduce your taxes. QCD wins because the income is excluded entirely rather than deducted.

QCD vs Cash Donation

Three Ways to Donate
StrategyRMD TaxableDonation DeductionNet AGI ImpactTax CostNet Cost to You