QCD Calculator
A Qualified Charitable Distribution (QCD) lets IRA owners age 70½ or older give up to $111,000 directly to charity in 2026 — and the gift is excluded from your gross income entirely. That's better than any charitable deduction. Enter your RMD and planned QCD to see the full tax and Medicare savings.
What is a Qualified Charitable Distribution?
A QCD is a direct transfer from your IRA to a qualified 501(c)(3) charity. Unlike a regular charitable deduction, a QCD is excluded from your adjusted gross income — not just your taxable income. That single distinction creates three advantages most advisors underutilize:
- Lowers MAGI, not just taxable income. Regular charitable deductions only help if you itemize (and most retirees don't — the 2026 standard deduction is $16,100 single / $32,200 MFJ). A QCD reduces AGI regardless of whether you itemize, which matters for everything income-driven: IRMAA surcharges, Social Security taxation, Medicare Part B premiums, state tax calculations.
- Satisfies your RMD tax-free. QCDs count toward your RMD for the year. If your RMD is $60,000 and you give $60,000 via QCD, you've satisfied the full RMD without a single dollar appearing in your income.
- No floor, no 60% AGI limit. Unlike cash charitable deductions, QCDs are not limited to a percentage of AGI, and there's no 2% floor to clear.
2026 QCD rules
| Rule | Detail |
|---|---|
| Age requirement | Must be 70½ or older on the date of distribution |
| Annual limit per person | $111,000 for 2026 (indexed; was $108,000 in 2025)1 |
| Married filing jointly | Each spouse can give $111,000 from their own IRA — $222,000 combined |
| Account type | Traditional IRA only. Not 401(k), 403(b), SEP IRA (unless inactive), SIMPLE IRA (if ≥2 years old) |
| Eligible charities | 501(c)(3) public charities. Not donor-advised funds, private foundations, or supporting organizations |
| Transfer method | Check payable directly to the charity, or wire transfer from IRA custodian to charity. Never pass through your hands. |
| RMD offset | QCD counts toward current-year RMD up to the RMD amount. Excess QCD doesn't carry forward. |
| Roth IRAs | Technically allowed but rarely beneficial since Roth distributions are already tax-free |
QCDs and IRMAA: the hidden Medicare benefit
IRMAA (Income-Related Monthly Adjustment Amount) surcharges are triggered by income thresholds — and they're steep. For 2026, a single filer with MAGI over $109,000 pays $284.10/month for Part B instead of the standard $202.90. That's an extra $972/year just for crossing one threshold by $1.2
Because QCDs reduce MAGI, they can move you below an IRMAA cliff — and since IRMAA uses a two-year lookback, lowering income this year reduces premiums in 2028. For a couple where both are on Medicare, a single IRMAA tier drop saves $1,900–$3,800/year in premiums, on top of income tax savings.
| Single MAGI | Monthly Part B | Monthly Part D surcharge | Annual cost (both B+D) |
|---|---|---|---|
| ≤ $109,000 | $202.90 | $0 | $2,434.80 |
| $109,001 – $137,000 | $284.10 | $14.50 | $3,583.20 |
| $137,001 – $171,000 | $405.80 | $37.50 | $5,318.40 |
| $171,001 – $205,000 | $527.50 | $60.40 | $7,054.80 |
| $205,001 – $500,000 | $649.20 | $83.30 | $8,781.60 |
| Over $500,000 | $689.90 | $91.00 | $9,371.60 |
MFJ thresholds: ≤$218K / $218K–$274K / $274K–$342K / $342K–$410K / $410K–$750K / >$750K. Premiums are per-person; a couple enrolled in Medicare each pay separately.
When QCDs don't help (and what to do instead)
QCDs have limits. They don't make sense if you have no charitable intent — you can't give the money to yourself or family. They also don't help if your income is already well below IRMAA thresholds and you're in a low bracket. And for those in the pre-RMD window ages 60–72, Roth conversions are usually the primary lever for tax reduction, not QCDs (since QCDs require age 70½).
For retirees with larger balances ($2M+), QCDs alone won't solve the RMD problem — they're capped at $111,000. Roth conversions in the 60–72 window are the strategy that prevents RMDs from growing. QCDs handle what's left. A specialist models both in combination.
Related tools & guides
- RMD Calculator — see your required amounts by age through 10 years
- Roth Conversion Calculator — model tax savings from pre-RMD conversions
- Inherited IRA 10-Year Rule Calculator — plan distributions for inherited accounts
- Complete RMD & Retirement Distribution Guide — Roth windows, QCDs, IRMAA, inherited IRAs
Get a specialist to integrate QCDs into your full plan
QCDs are one piece of a complete retirement distribution strategy. A fee-only RMD specialist integrates your QCD budget with Roth conversion decisions, IRMAA tier management, Social Security timing, and estate goals — all of which interact. Free match with a specialist who works exclusively on retirement distribution planning.
Sources
- Charles Schwab — Reducing RMDs With QCDs in 2026: confirms $111,000 per-person QCD limit for 2026 (IRS inflation adjustment from $108,000 in 2025).
- Kiplinger — Medicare Premiums 2026: IRMAA Brackets and Surcharges: 2026 Part B and Part D monthly premium amounts per IRMAA tier; standard premium $202.90/month.
- SSA POMS HI 01101.020 (Dec 2025): authoritative 2026 IRMAA sliding-scale income brackets and surcharge amounts.
- IRS Publication 590-B — Distributions from Individual Retirement Arrangements: QCD rules under IRC § 408(d)(8), age 70½ requirement, eligible charities, and annual limit.
Values verified against 2026 rules as of April 2026. QCD limit: $111,000 (IRS inflation-adjusted). IRMAA thresholds: CMS/SSA 2026 schedule. Tax brackets: IRS Rev. Proc. 2025-32 + OBBBA (July 2025).