QCD impact
| 2026 RMD | $22,000 |
| Satisfied by QCD | $22,000 |
| Remaining RMD (take as taxable withdrawal) | $0 |
| QCD limit (2026) | $108,000 |
At 22% bracket — the QCD avoids income tax on $22,000 that would otherwise be taxable even with a charitable deduction (standard deduction cap).
What is How to Use the QCD Calculator?
A Qualified Charitable Distribution (QCD) allows IRA owners age 70½ and older to transfer up to $108,000 per year directly from their IRA to a qualifying charity. The QCD is excluded from your taxable income and can satisfy your Required Minimum Distribution — making it one of the most powerful charitable strategies available to retirees.
How to Use
- Enter your current MAGI (before any RMD) to see how the QCD affects your income.
- Enter your 2026 Required Minimum Distribution amount. If unsure, use the RMD Calculator tool.
- Enter how much you plan to give as a QCD. The calculator caps this at the lesser of your input, your RMD, or the $108,000 annual limit.
- Select your filing status and estimated federal tax bracket to see your approximate tax benefit.
- Review the comparison: QCD vs. taking the RMD first and then donating.
Why Use This Tool?
Tips & Best Practices
- Request the QCD in January or February — this ensures the distribution clears before your RMD deadline and avoids year-end custodian delays.
- The check must be made payable directly to the charity (not to you). Some custodians mail a check to you to forward — this is acceptable, but do not deposit it in your account.
- Donor-advised funds do NOT qualify for QCDs. The charity must be a 501(c)(3) public charity that receives funds directly from your IRA.
- Track your QCD on Form 1040: the RMD is on line 4a (gross distributions), and the QCD exclusion keeps it off line 4b (taxable amount). Write "QCD" on line 4b.
- If you have a pre-2026 non-deductible IRA basis, the QCD reduces your after-tax basis proportionally — consult a tax advisor for complex situations.
Frequently Asked Questions
What is the 2026 QCD limit?
The 2026 QCD limit is $108,000 per IRA owner. Spouses who both have IRAs can each make QCDs up to $108,000 for a combined $216,000. This limit is indexed for inflation annually.
Can a QCD satisfy my RMD?
Yes. A QCD counts toward your RMD for the year. If your RMD is $20,000 and you make a $20,000 QCD, you satisfy the full RMD with zero taxable income from that distribution.
Is a QCD better than taking the RMD and donating separately?
Almost always yes, especially if you take the standard deduction. A regular RMD included in AGI raises your taxable income and can trigger IRMAA surcharges and SS taxability even if you donate the money. A QCD never enters AGI at all.
Who is eligible for a QCD?
You must be age 70½ or older and have a traditional IRA (including inherited IRAs in some cases). Roth IRAs are eligible but rarely beneficial since Roth withdrawals are already tax-free. 401(k) and 403(b) accounts are not eligible — you would need to roll funds into an IRA first.