QCD Calculator 2026 — Qualified Charitable Distribution from IRA
Calculate 2026 QCD tax savings from IRA to charity. $108,000 limit age 70½+, RMD offset, AGI reduction, IRMAA tier savings, and Social Security tax bracket impact.
Must be 70½+ to make a QCD
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Your total traditional IRA balance (used to estimate RMD) $
Amount to send directly from IRA to charity (max $108,000/year) Your current marginal federal income tax rate
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AGI from all sources before taking this year's RMD $
Your annual Social Security benefit (for SS taxation calc) QCD advantage over cash donation depends on itemization
Examples:
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Income Tax Saved by QCD
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RMD Satisfied by QCD
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AGI Reduction
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AGI After QCD
QCD vs Cash Donation Comparison
| Component | QCD Strategy | Cash Donation |
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RMD and QCD Details
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How Qualified Charitable Distributions Work in 2026
A QCD is the most tax-efficient way to give to charity if you are 70½+ with an IRA. The distribution bypasses your income entirely, reducing AGI rather than just taxable income.
QCD Key Rules 2026
Minimum age: 70½ (you must be 70½ on the date of distribution)
Annual limit: $108,000 per person (indexed for inflation)
Counts toward RMD: Yes, dollar-for-dollar
Must go directly: IRA custodian → charity (no DAFs or private foundations)
No double-dip: Cannot deduct a QCD as charitable contribution
Reduces AGI: Better than itemized deduction for most retirees
Annual limit: $108,000 per person (indexed for inflation)
Counts toward RMD: Yes, dollar-for-dollar
Must go directly: IRA custodian → charity (no DAFs or private foundations)
No double-dip: Cannot deduct a QCD as charitable contribution
Reduces AGI: Better than itemized deduction for most retirees
Example: $15,000 QCD, AGI $95,000, 22% bracket
RMD required: ~$18,248 | QCD: $15,000
RMD after QCD: $18,248 − $15,000 = $3,248 remaining taxable
AGI reduction: $15,000 (direct exclusion from income)
Tax saved: $15,000 × 22% = $3,300
Cash donation alternative (itemizer): $15,000 × 22% = $3,300 (same IF itemizing above std deduction)
Cash donation (standard deduction): $0 additional benefit
QCD wins for non-itemizers and for IRMAA/SS reduction
RMD after QCD: $18,248 − $15,000 = $3,248 remaining taxable
AGI reduction: $15,000 (direct exclusion from income)
Tax saved: $15,000 × 22% = $3,300
Cash donation alternative (itemizer): $15,000 × 22% = $3,300 (same IF itemizing above std deduction)
Cash donation (standard deduction): $0 additional benefit
QCD wins for non-itemizers and for IRMAA/SS reduction
Extended
AGI Cliff Analysis — IRMAA + Social Security Tax Impact
See how your QCD affects IRMAA tiers, SS taxation, and ACA eligibility
AGI Cliff Analysis — IRMAA + Social Security Impact
How different QCD amounts affect your Medicare surcharges and Social Security taxation. Filing: Single
| QCD Amount | AGI After QCD | IRMAA Tier | IRMAA Cost/yr | SS Taxable % | Total Benefit |
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Frequently Asked Questions
What is a Qualified Charitable Distribution (QCD)?
A QCD is a direct transfer of funds from your IRA to a qualified 501(c)(3) charity. Unlike a regular charitable deduction, a QCD reduces your AGI directly — it is excluded from your gross income entirely. You must be age 70½ or older. The maximum QCD per person per year in 2026 is $108,000. If both spouses have IRAs, each can contribute up to $108,000 for a combined maximum of $216,000. The distribution must go directly from the IRA custodian to the charity.
How does a QCD count toward my Required Minimum Distribution (RMD)?
A QCD counts dollar-for-dollar toward your annual RMD. For example, if your 2026 RMD is $15,000 and you make a $15,000 QCD, your RMD is fully satisfied with zero tax owed. If your QCD exceeds your RMD, the excess does not carry over to future years but still reduces your AGI. This makes QCDs especially powerful for taxpayers who do not need the full RMD for living expenses and would otherwise be forced to take taxable RMD income.
What is the AGI advantage of a QCD over a regular charitable deduction?
A regular cash charitable donation reduces your taxable income only if you itemize deductions (and only by the amount over the standard deduction threshold). A QCD reduces your AGI directly, regardless of whether you itemize. Lower AGI has cascading benefits: (1) may reduce IRMAA Medicare surcharges, (2) reduces the percentage of Social Security that is taxable (avoiding the 50%/85% taxation thresholds), (3) may improve ACA subsidy eligibility, and (4) may affect state income tax if your state links to federal AGI.
What charities qualify for a QCD?
A QCD must go to a public 501(c)(3) charity. Donor-Advised Funds (DAFs), private foundations, and supporting organizations do NOT qualify for QCDs — this is a common mistake. Eligible recipients include churches, schools, hospitals, and most standard charities. Beginning with tax years after December 29, 2022 (SECURE 2.0), a one-time QCD of up to $54,000 (2026 indexed amount) to a split-interest entity (charitable remainder trust or charitable gift annuity) is also allowed.
What are the IRMAA thresholds I should watch with my AGI?
IRMAA (Income-Related Monthly Adjustment Amount) adds Medicare Part B and Part D surcharges for higher-income retirees. For 2026, IRMAA tiers begin at: Tier 1: $106,000 single / $212,000 MFJ; Tier 2: $133,000 / $266,000; Tier 3: $167,000 / $334,000; Tier 4: $200,000 / $400,000; Tier 5: $500,000+ / $750,000+. Each tier adds hundreds of dollars per month per person. A QCD that reduces AGI below a tier threshold can save $2,000–$5,000+ annually in IRMAA costs.