QCD — offsetting your RMD with charitable giving
A Qualified Charitable Distribution is a direct transfer from your IRA to a qualified charity. It counts toward your RMD, but the distributed amount is excluded from your AGI — typically a better outcome than taking the RMD as income and itemizing the donation.
Annual limits
The QCD limit is indexed annually for inflation under SECURE 2.0 §307. Verify the current-year amount against the latest IRS Rev. Proc. before relying on it.
| Limit | Notes | Statute |
|---|---|---|
| Annual QCD limit (per person) | Indexed annually for inflation; check IRS Rev. Proc. for the current-year figure | IRC §408(d)(8)(A) |
| One-time split-interest entity election | Cap on a one-time election (CRT, CGA, or pooled-income fund); also indexed | SECURE 2.0 §307 |
Eligibility & mechanics
- Available starting age 70½ (note: not 73 — the QCD age was unchanged by SECURE 2.0).
- Direct transfer from an IRA — not 401(k), not 403(b). SEP / SIMPLE only if not "active" (no contribution that year).
- Recipient must be a 501(c)(3) — donor-advised funds and private foundations do not qualify.
- Reported on Form 1099-R as a normal distribution; the QCD treatment is claimed on Form 1040 line 4b (write "QCD").
Why a QCD beats a deduction
The RMD increases your AGI, which can trigger Medicare IRMAA surcharges, NIIT, and Social Security taxation thresholds. A QCD bypasses all of that — the donated amount never enters your AGI. For most retirees who don't itemize anyway, the QCD is purely additive.
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Informational, not tax advice. Required Minimum Distribution rules involve facts unique to your accounts; consult a CFP® or CPA before acting. RMDAcross may earn a referral fee from sponsors linked on this page — this does not affect our analysis. How we research →
Last verified: May 6, 2026 · Pub 590-B post-2022 (TD 9930) divisors.