Qualified charitable distributions are still allowed in 2026, never repealed, and the 2026 per-person limit rose to $111,000, letting an IRA owner age 70½ give directly to a qualified charity tax free.
Key Takeaways
- The 2026 QCD annual limit is $111,000 per person, up from $108,000 in 2025.
- A QCD requires the IRA owner to be at least age 70½ on the date of the transfer.
- The PATH Act of 2015 made the IRA charitable rollover a permanent part of the tax code.
- QCDs are available only from a traditional or inherited IRA, not a 401(k), 403(b), or 457(b).
- A married couple who each qualify can exclude up to $222,000 combined in 2026.
- SECURE 2.0 section 307 allows a one-time $55,000 split-interest QCD within the annual limit.
- The 2026 One Big Beautiful Bill Act (P.L. 119-21) added a 0.5% AGI floor to Schedule A gifts, not to QCDs.
QCDs in 2026, by the numbers
Figures reflect the 2026 federal rules stated in this article.
Yes, the qualified charitable distribution is still allowed in 2026, so the rumor that QCDs were eliminated is simply false. Congress made the IRA charitable rollover permanent back in 2015, and for 2026 the annual limit actually rose to $111,000 per person. This guide explains where the “no longer allowed” confusion started, who qualifies at age 70½, and why the strategy works only from an IRA.
Qualified charitable distributions remain fully legal in 2026. A QCD lets an IRA owner who is at least age 70½ transfer up to $111,000 directly to a qualified 501(c)(3) charity, tax free. That amount counts toward a required minimum distribution without raising adjusted gross income. QCDs were never repealed; the IRS-recognized rule was made permanent by the PATH Act of 2015.
Short answer: yes, QCDs are still allowed in 2026
Yes, the qualified charitable distribution is still allowed in 2026, and no law repealed it. An IRA owner who is at least age 70½ can send up to $111,000 straight from an IRA to one or more qualified charities and exclude that amount from taxable income. The transfer can also satisfy part or all of a required minimum distribution for the year.
If you have heard that QCDs were canceled, you are not alone. The anxiety is real, but the tax code is clear: the provision is permanent and, if anything, more generous in 2026 than in prior years. The rest of this article shows exactly why the confusion spread and what the current rules are.
Where does the “QCDs are no longer allowed” confusion come from?
The belief that QCDs are no longer allowed traces to two separate sources: the provision’s history as a temporary tax break that Congress renewed year to year before 2015, and confusion with a different 2026 change to itemized charitable deductions. The QCD rule itself was made permanent and was not touched by those deduction changes.
The IRA charitable rollover was made permanent in 2015, not repealed
The IRA charitable rollover first appeared in the Pension Protection Act of 2006 as a temporary provision. For nearly a decade it expired and was reinstated repeatedly, so retirees learned to ask each December whether it still applied. The PATH Act of 2015 made the qualified charitable distribution a permanent part of the Internal Revenue Code, ending the annual on-again, off-again uncertainty.
That decade of year-to-year renewals is the historical root of today’s “is it still allowed?” question. The habit of checking each year stuck, even though the answer has been a settled yes for more than ten years.
Why people confuse it with the 2026 charitable-deduction changes (OBBBA)
A separate 2026 law, the One Big Beautiful Bill Act (P.L. 119-21), changed how itemized charitable deductions work. It added a 0.5% of AGI floor before a gift is deductible and capped the tax benefit at a 35% rate for the highest earners. Those limits apply only to deductions claimed on Schedule A. They do not apply to a QCD, which is an exclusion from income rather than a deduction.
Because both stories reached retirees at the same time, many people merged two unrelated rule changes into one worry. In practice the QCD sidesteps the new deduction limits entirely, which can make it more valuable in 2026 than before.
What actually changed for 2026 versus what stayed the same
For 2026 the QCD annual limit rose to $111,000 per person, up from $108,000 in 2025, because SECURE 2.0 now indexes the cap to inflation. The core rules did not change: you still must be age 70½ on the date of the gift, the funds must come from an IRA, and the money must move directly to a qualified public charity.
| Feature | What has NOT changed | What HAS changed for 2026 |
|---|---|---|
| Legal status | Still allowed and permanent | No change; not repealed |
| Age requirement | Age 70½ on the date of distribution | No change |
| Eligible account | Traditional or inherited IRA only | No change; 401(k) plans still excluded |
| Annual limit | Per-person cap | Raised to $111,000 (from $108,000 in 2025) |
| Split-interest option | One-time lifetime election | Indexed to $55,000 for 2026 |
| Itemized deduction floor | QCD is an income exclusion, not a deduction | New 0.5% AGI floor and 35% cap apply only to Schedule A gifts, not QCDs |
For a fuller walkthrough of the annual mechanics, see our companion page on qualified charitable distributions for 2026.
The 2026 QCD limit: $111,000 per person (up from $108,000)
The 2026 QCD limit is $111,000 per eligible person. A married couple who each own an IRA and each meet the age test can exclude up to $222,000 combined. The cap is indexed annually under SECURE 2.0, which is why it climbed from $108,000 in 2025 to $111,000 in 2026.
| Tax year | Per-person QCD limit | Married couple, both eligible |
|---|---|---|
| 2025 | $108,000 | $216,000 |
| 2026 | $111,000 | $222,000 |
The one-time $55,000 split-interest QCD
SECURE 2.0 section 307 created a one-time election to route up to $55,000 (the 2026 amount) of a QCD into a split-interest vehicle, such as a charitable remainder trust or a charitable gift annuity. This $55,000 counts inside the $111,000 annual limit, can be used only once in a lifetime, and follows strict funding rules that the receiving vehicle must satisfy.
Who can make a QCD? The age 70½ rule explained
To make a qualified charitable distribution you must be at least age 70½ on the actual date of the transfer, not merely turning 70½ later in the year. The distribution must come from a traditional or inherited IRA, and it must pass directly from the IRA custodian to a qualified 501(c)(3) public charity. Donor-advised funds and private foundations do not qualify.
70½ versus RMD age 73: why you can give before you must take RMDs
You can make a QCD at age 70½ even though required minimum distributions do not begin until age 73 (or age 75 for those born in 1960 or later). This creates a several-year window where a QCD is allowed before RMDs are mandatory, letting you give tax free from an IRA earlier than you are forced to withdraw. Once RMDs start, a QCD can also satisfy them.
Most articles blur these two ages together. They are different thresholds. For the current withdrawal timeline, see our guide to required minimum distributions for 2026.
Why QCDs only work from an IRA, not a 401(k)
A QCD is available only from an IRA, including traditional and inherited IRAs. Employer plans such as a 401(k), 403(b), or 457(b) do not qualify for a direct qualified charitable distribution under the tax code. If your retirement savings sit in a workplace plan, the money must first move into an IRA before a QCD is possible.
What to do if your money is in a 401(k) or 403(b)
If your funds are in a 401(k) or 403(b), a common path is to roll the balance into a traditional IRA and then make the QCD from that IRA once you are age 70½. The rollover itself is generally not taxable when done as a direct transfer. Timing and plan rules vary, so many investors review this with an adviser first.
Our sibling page walks through the details of a QCD from a 401(k) and whether you can do it.
How a QCD lowers your taxes and satisfies your RMD
A QCD lowers taxes by excluding the gifted amount from adjusted gross income entirely, and it can count toward your required minimum distribution for the year. Because the money never appears in AGI, it can also help keep other income-linked figures in check, such as Medicare premiums and the taxability of Social Security. This differs from taking a cash withdrawal and then claiming a deduction.
Consider a hypothetical IRA owner, age 74, with a $40,000 RMD for 2026 who plans to give $20,000 to charity. If she takes the full RMD as cash and then donates, the whole $40,000 is added to her AGI. If instead she directs $20,000 through a QCD, only the remaining $20,000 of the RMD is taxable, and the gift never enters her AGI. A lower AGI can influence figures that key off income, including the 3.8% net investment income tax and IRMAA-based Medicare surcharges.
Some retirees pair QCDs with a broader income plan that also uses Roth conversions to shape lifetime taxes. For a plain-language primer, see what a QCD is and how it reduces taxes.
Common mistakes that disqualify a QCD
The most frequent QCD errors involve control of the funds and the type of recipient. A QCD must move directly from the IRA custodian to the charity; if the owner takes possession of the money first, the tax-free treatment is generally lost. Gifts to donor-advised funds and private foundations do not qualify, and the timing and account type must match the rules.
- Taking the distribution as cash yourself instead of a direct custodian-to-charity transfer.
- Sending the gift to a donor-advised fund or private foundation, neither of which is eligible.
- Making the transfer before you have actually reached age 70½.
- Trying to run a QCD from a 401(k), 403(b), or 457(b) rather than an IRA.
- Exceeding the $111,000 per-person limit for 2026.
- Overlooking reporting: the Form 1099-R shows the full distribution, so the amount must be flagged as a QCD on your return.
Work with Q3 Advisors
Q3 Advisors is a registered investment adviser focused on retirement tax planning. This page is educational and is not advice; consult a qualified professional.
Frequently asked questions
Are qualified charitable distributions still allowed?
Yes. Qualified charitable distributions are still allowed in 2026 and remain a permanent part of the tax code. An IRA owner who is at least age 70½ can transfer up to $111,000 directly to a qualified charity and exclude it from taxable income. No 2026 law repealed or suspended the QCD, despite widespread rumors to the contrary.
What is the QCD limit for 2026?
The QCD limit for 2026 is $111,000 per eligible person, up from $108,000 in 2025. The cap is indexed to inflation under SECURE 2.0. A married couple in which both spouses own IRAs and both meet the age test can exclude up to $222,000 combined for the year.
At what age can you make a qualified charitable distribution?
You can make a qualified charitable distribution once you are at least age 70½ on the actual date of the transfer. Turning 70½ later in the year is not enough; the age must be met when the money moves. This is separate from the age at which required minimum distributions begin.
Can you make a QCD from a 401(k)?
No. A QCD cannot be made directly from a 401(k), 403(b), or 457(b) plan. The tax code allows QCDs only from IRAs, including traditional and inherited IRAs. If your money is in a workplace plan, you generally must roll it into a traditional IRA first, then make the QCD from that IRA at age 70½ or older.
Do QCDs count toward your required minimum distribution?
Yes. A qualified charitable distribution can count toward your required minimum distribution for the year, up to the $111,000 limit for 2026. Because the QCD is excluded from adjusted gross income, using it to satisfy an RMD lets you meet the withdrawal requirement without adding the amount to your taxable income.
Can you take a QCD before you have to take RMDs?
Yes. You can make a QCD starting at age 70½, even though required minimum distributions do not begin until age 73 (or age 75 for those born in 1960 or later). That gap creates a multi-year window in which giving directly from an IRA is allowed before any withdrawal is mandatory.
Were qualified charitable distributions repealed?
No. Qualified charitable distributions were not repealed. The IRA charitable rollover was made permanent by the PATH Act of 2015, and the 2026 One Big Beautiful Bill Act did not remove it. The new 2026 rules affect itemized charitable deductions on Schedule A, which are a different mechanism from the QCD income exclusion.
