The QCD vs Roth conversion decision usually comes down to age and goal: a qualified charitable distribution (QCD) removes IRA money tax-free for donors who are at least 70½, while a Roth conversion pays tax now to move money into a tax-free account, and it tends to fit best in the pre-RMD years before age 73. They are different tools for different problems, not interchangeable versions of the same move.
A QCD sends up to $111,000 in 2026 directly from an IRA to charity and is excluded from income while counting toward the required minimum distribution (RMD); it requires age 70½. A Roth conversion is taxable now but creates a Roth IRA with no lifetime RMDs. The two differ mainly by age, charitable intent, and tax-year capacity. (Source: IRS Notice 2025-67; IRS Pub 590-B, 2025.)
QCD vs Roth conversion: how the two strategies differ
QCDs and Roth conversions solve opposite problems. A QCD is for someone at least 70½ who is charitably inclined and wants to reduce taxable IRA income, often by satisfying part or all of an RMD without recognizing the distribution as income (Source: IRS Pub 590-B, 2025). A Roth conversion is for someone who expects higher future tax rates or wants to eliminate future lifetime RMDs and is willing to pay tax on the converted amount today (Source: IRS Pub 590-A and Pub 590-B, 2025).
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Because the two strategies target different ages and goals, they rarely compete head-to-head for the same dollar. The clearest split is timing: a QCD only helps once you reach 70½ and becomes especially useful once RMDs begin at 73, whereas a Roth conversion is often most efficient in the lower-income “gap years” before RMDs start (Source: IRS Pub 590-B, 2025). For households that want to combine both over time, Q3 Advisors covers the integrated approach separately in the impact of charitable giving on Roth conversions.
Side-by-side comparison
The table below sets the two strategies next to each other on the factors that separate most cases: who qualifies by age, how each is taxed in the current year, whether each counts toward an RMD, and how each is reported. Every figure reflects tax year 2026 and is drawn from IRS primary sources (Source: IRS Notice 2025-67; IRS Pub 590-B, 2025).
| Factor | QCD (Qualified Charitable Distribution) | Roth conversion |
|---|---|---|
| Minimum age | 70½ when the distribution is made (Source: IRS Pub 590-B, 2025) | No age minimum (Source: IRS Pub 590-A, 2025) |
| 2026 annual limit | $111,000 excluded from gross income (Source: IRS Notice 2025-67) | No dollar limit on amount converted (Source: IRS Pub 590-A, 2025) |
| Tax effect this year | Excluded from income; not an itemized deduction (Source: IRS Pub 590-B, 2025) | Pre-tax amount converted is includible in gross income (Source: IRS Pub 590-B, 2025) |
| Counts toward RMD? | Yes, a QCD counts toward the RMD (Source: IRS Pub 590-B, 2025) | No; a conversion does not satisfy an RMD (Source: IRS Pub 590-B, 2025) |
| Future RMDs on the account | Unchanged (still a traditional IRA) | Roth IRAs have no RMDs during the owner’s lifetime (Source: IRS Pub 590-B, 2025) |
| Where the money goes | Directly to a qualifying charity via the IRA trustee (Source: IRS Pub 590-B, 2025) | Into the owner’s own Roth IRA |
| Reporting form | Full distribution reported on Form 1040 line 4a, with the excluded amount not carried to the taxable amount on line 4b (Source: IRS Form 1040 Instructions, 2025) | Reported on Form 8606 (Source: IRS Pub 590-B, 2025) |
How a QCD works and who can use it
A QCD is a distribution paid directly by the IRA trustee to a qualifying charity for an IRA owner who is at least 70½ on the date of the distribution; the amount is excluded from gross income rather than claimed as an itemized charitable deduction (Source: IRS Pub 590-B, 2025). For 2026, the aggregate QCD exclusion is $111,000, up from $108,000 in 2025 (Source: IRS Notice 2025-67).
QCDs are available from IRAs other than ongoing SEP or SIMPLE IRAs (Source: IRS Pub 590-B, 2025). A separate one-time election lets an IRA owner direct up to $55,000 in 2026 to a split-interest entity such as a charitable gift annuity or charitable remainder trust, up from $54,000 in 2025 (Source: IRS Notice 2025-67).
A defining feature of a QCD is that it counts toward the RMD (Source: IRS Pub 590-B, 2025). An owner subject to RMDs can direct all or part of that required amount to charity and keep it out of adjusted gross income, which can matter for thresholds discussed below.
How a Roth conversion works and who can use it
A Roth conversion moves money from a traditional IRA into a Roth IRA. The pre-tax (previously untaxed) portion converted is includible in gross income in the year of the conversion and is reported on Form 8606 (Source: IRS Pub 590-A and Pub 590-B, 2025). There is no age minimum and no dollar cap on the amount converted (Source: IRS Pub 590-A, 2025).
The payoff is on the back end. Roth IRAs are not subject to RMDs during the owner’s lifetime (Source: IRS Pub 590-B, 2025). Qualified distributions of Roth earnings are generally tax-free once the account has met the five-year holding period and the owner is at least 59½ (or meets a death, disability, or first-home exception); non-qualified earnings distributions can be taxable and may trigger the 10% additional tax on early distributions (Source: IRS Pub 590-B, 2025).
Because a conversion adds to income now, it does not satisfy an RMD, and RMDs must generally be taken before converting once the owner is RMD-age (Source: IRS Pub 590-B, 2025). RMDs begin at age 73 for individuals who reached age 72 after December 31, 2022, with the first RMD due by April 1 of the following year (Source: IRS Pub 590-B, 2025).
The timing gap most comparisons miss: pre-RMD years vs post-70½
A factor that separates these two strategies is when each applies across a retirement timeline, and this is where many head-to-head comparisons stop short. A Roth conversion is often used in the pre-RMD “gap years,” the lower-income stretch before RMDs begin at 73. A QCD does the opposite: it becomes available at 70½ and can satisfy the RMD without adding income once RMDs are running (Source: IRS Pub 590-B, 2025).
| Life stage | Typical Roth conversion role | Typical QCD role |
|---|---|---|
| Before 70½ | Available and often used during lower-income gap years (Source: IRS Pub 590-A, 2025) | Not available (under age 70½) (Source: IRS Pub 590-B, 2025) |
| 70½ to 72 | Still available; no RMD yet to work around (Source: IRS Pub 590-B, 2025) | Available; RMDs have not yet begun (Source: IRS Pub 590-B, 2025) |
| 73 and later | Available, but RMD must generally be taken first (Source: IRS Pub 590-B, 2025) | Can satisfy RMD while excluding it from income (Source: IRS Pub 590-B, 2025) |
For readers weighing conversions across these years, Q3 Advisors maintains related research on required minimum distributions for 2026 and Roth conversion statistics for 2026.
Tax outcomes and how each strategy hits your other thresholds
A QCD keeps money out of adjusted gross income (AGI), while a Roth conversion pushes AGI up in the conversion year (Source: IRS Pub 590-B, 2025). That single difference ripples through several income-tested items, so the two strategies can affect the same taxpayer in opposite directions in a given year.
Higher AGI from a conversion can increase income-related monthly adjustment amounts (IRMAA) for Medicare Part B. IRMAA uses the tax return from two years prior, so 2026 IRMAA is based on 2024 income (Source: SSA POMS HI 01101.020 and HI 01101.010). In 2026, no Part B surcharge applies at MAGI up to $109,000 (individual) or $218,000 (married filing jointly) (Source: SSA POMS HI 01101.020).
| 2026 MAGI (individual) | 2026 MAGI (married filing jointly) | Total monthly Part B premium |
|---|---|---|
| >$109,000 to $137,000 | >$218,000 to $274,000 | $284.10 |
| >$137,000 to $171,000 | >$274,000 to $342,000 | $405.80 |
| >$171,000 to $205,000 | >$342,000 to $410,000 | $527.50 |
| >$205,000 to <$500,000 | >$410,000 to <$750,000 | $649.20 |
| ≥$500,000 | ≥$750,000 | $689.90 |
AGI changes can also affect how much of a Social Security benefit is taxed. Up to 50% of benefits can be taxable once combined income exceeds $25,000 (single) or $32,000 (married filing jointly), and up to 85% above $34,000 (single) or $44,000 (married filing jointly); those thresholds are not inflation-indexed (Source: SSA Benefits Planner; IRS Pub 915). Q3 Advisors covers this interaction in its research on the Social Security tax torpedo and the 2026 Medicare IRMAA brackets.
How the factors line up
Neither strategy is universally better, because they differ by age, charitable intent, and how much taxable income a given year can absorb. The factors below organize the comparison into a repeatable order for educational purposes; they describe how the rules apply rather than a recommendation, and individual circumstances vary widely.
- Eligibility differs by age. QCDs require age 70½ on the distribution date, while Roth conversions have no age minimum (Source: IRS Pub 590-B and Pub 590-A, 2025).
- The goals differ. Charitable giving with income exclusion aligns with a QCD, while long-term tax-free growth and no lifetime RMDs align with a Roth conversion (Source: IRS Pub 590-B, 2025).
- RMD status matters. At 73 or older, a QCD can satisfy the RMD while excluding it from income, and a conversion cannot satisfy an RMD (Source: IRS Pub 590-B, 2025).
- Tax-year capacity varies. A conversion adds income and can cross IRMAA, Social Security taxation, or bracket thresholds, depending on the amount (Source: SSA POMS HI 01101.020; IRS Pub 915).
- Reporting differs. A QCD is reported on Form 1040 by reducing the taxable amount on line 4b, while a conversion is reported on Form 8606 (Source: IRS Form 1040 Instructions; IRS Pub 590-B, 2025).
Work with Q3 Advisors
Q3 Advisors is a registered investment adviser focused on retirement tax planning. This article is educational and is not advice; for guidance on your own circumstances, consult a qualified tax or financial professional.
Frequently asked questions
Can you do a QCD and a Roth conversion in the same year?
The rules allow both in the same year, because they use different mechanics: a QCD goes directly from the IRA to a charity and is excluded from income, while a Roth conversion moves IRA money into a Roth IRA and is includible in income (Source: IRS Pub 590-B, 2025). At age 73 or older, one common sequence is to take the RMD (which a QCD can satisfy) before converting (Source: IRS Pub 590-B, 2025).
Does a QCD or a Roth conversion count toward my RMD?
A QCD counts toward the required minimum distribution, while a Roth conversion does not (Source: IRS Pub 590-B, 2025). Because a conversion cannot satisfy an RMD, an owner who is 73 or older generally must take the RMD first and then convert additional amounts; RMDs begin at age 73 for those who reached 72 after December 31, 2022 (Source: IRS Pub 590-B, 2025).
What is the QCD limit for 2026?
For 2026, the aggregate QCD exclusion is $111,000, up from $108,000 in 2025 (Source: IRS Notice 2025-67). A separate one-time election allows up to $55,000 in 2026 to a split-interest entity such as a charitable gift annuity or charitable remainder trust, up from $54,000 in 2025 (Source: IRS Notice 2025-67). QCDs require the owner to be at least 70½ (Source: IRS Pub 590-B, 2025).
Is a Roth conversion taxable?
Yes. The pre-tax amount converted from a traditional IRA is includible in gross income in the year of the conversion and is reported on Form 8606 (Source: IRS Pub 590-A and Pub 590-B, 2025). In exchange, Roth IRAs are not subject to RMDs during the owner’s lifetime, and qualified distributions of earnings are generally tax-free after the five-year holding period and age 59½ (Source: IRS Pub 590-B, 2025).
Which is better before RMD age, a QCD or a Roth conversion?
It depends on age and goal. A QCD is not available before 70½, so before that age the choice is effectively a Roth conversion or nothing on the charitable side (Source: IRS Pub 590-B, 2025). Roth conversions are often used during the lower-income gap years before RMDs begin at 73, though the tax impact depends on individual circumstances (Source: IRS Pub 590-B, 2025).
Do QCDs or Roth conversions affect Medicare premiums?
A Roth conversion raises MAGI and can increase IRMAA surcharges, while a QCD is excluded from income and does not (Source: IRS Pub 590-B, 2025; SSA POMS HI 01101.020). IRMAA uses income from two years prior, so 2026 surcharges are based on 2024 MAGI, with no surcharge up to $109,000 (individual) or $218,000 (married filing jointly) (Source: SSA POMS HI 01101.020).
Sources
IRS Notice 2025-67 (2026 retirement-plan inflation adjustments): https://www.irs.gov/pub/irs-drop/n-25-67.pdf. IRS Publication 590-B (2025): https://www.irs.gov/publications/p590b. IRS Publication 590-A (2025): https://www.irs.gov/publications/p590a. IRS Form 1040 Instructions (2025): https://www.irs.gov/forms-pubs/about-form-1040. IRS Roth IRAs: https://www.irs.gov/retirement-plans/roth-iras. IRS Publication 915 (Social Security benefit taxation): https://www.irs.gov/publications/p915. SSA POMS HI 01101.020 (2026 IRMAA): https://secure.ssa.gov/poms.nsf/lnx/0601101020. SSA POMS HI 01101.010: https://secure.ssa.gov/apps10/poms.nsf/lnx/0601101010. SSA Benefits Planner (taxes): https://www.ssa.gov/benefits/retirement/planner/taxes.html. CMS 2026 Medicare Part B fact sheet: https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles.
