Qualified Charitable Distributions

A qualified charitable distribution, or QCD, is an eligible transfer made directly from an IRA to a qualifying charity. The amount that meets the rules can be excluded from taxable IRA income. It is different from withdrawing IRA money into your own account and then making a personal cash donation.

You must be at least age 70½ on the date of the distribution. Reaching that age later in the year does not qualify an earlier transfer. QCD eligibility is separate from the age when required minimum distributions begin, so an eligible person can use a QCD before RMDs are required.

For tax year 2026, the annual QCD exclusion limit is $111,000 per eligible individual. This is a combined limit across that person’s IRAs and qualifying charities, not a separate limit for each account. An eligible spouse has a separate limit. The limit is indexed, and other rules can reduce the amount you may exclude.

QCD rules apply to eligible IRA distributions, generally from traditional IRAs. An ongoing SEP or SIMPLE IRA is excluded. A 401(k) or 403(b) cannot make a QCD directly. Roth IRA distributions have special considerations because amounts already tax-free do not gain the same exclusion benefit. Confirm account eligibility before requesting a transfer.

Yes. The transfer must meet the direct IRA-to-charity requirement. If using a check, coordinate with the custodian so it is payable to the eligible charity, rather than to you personally. Receiving an ordinary IRA distribution and later donating your own money generally does not turn that distribution into a QCD.

No. The recipient must qualify under the QCD rules. Donor-advised funds and supporting organizations are not eligible recipients, and a gift that provides goods or services in return can create problems. Confirm the specific organization’s status and the nature of the gift before transferring, even if you have made deductible donations to it before.

Yes. A qualifying QCD can satisfy all or part of an IRA required minimum distribution for that year. It does not retroactively turn an earlier cash withdrawal into a QCD. Coordinate charitable transfers with other distributions, and confirm that any remaining required amount is withdrawn by its applicable deadline.

Complete the qualifying distribution during the tax year for which you want the exclusion. Coordinate year-end transfers early with the custodian and charity, especially when checks or processing delays are involved. A pledge or request alone does not establish a completed distribution. Keep evidence of the transaction date and verify completion before relying on it.

No. You cannot claim a charitable deduction for the portion excluded from income as a QCD. The exclusion can be available whether or not you itemize deductions. Other personal charitable gifts follow their own deduction rules. Keep QCDs separate from deductible donations in the records you provide to your preparer.

Yes. Deductible traditional IRA contributions for 2020 or later can reduce the QCD exclusion when made for years in which you were age 70½ or older at year-end. The cumulative calculation accounts for prior reductions so the same contribution is not counted repeatedly. Share your contribution and QCD history; the annual exclusion limit alone may not determine your result.

Keep the custodian’s transfer confirmation, Form 1099-R, and a written acknowledgment from the charity documenting the gift and any goods or services provided. Tell your preparer which distributions were intended as QCDs. Review reporting on the income tax return and any required basis calculation; the custodian’s form does not replace checking whether all QCD requirements were met.

Yes, an inherited IRA can qualify if you, as the beneficiary, are at least age 70½ when the distribution occurs and the other QCD requirements are met. The original owner’s age does not satisfy your age requirement. Coordinate the transfer with inherited-account distribution obligations and your combined annual QCD limit.