For tax year 2026, the maximum qualified charitable distribution (QCD) that an eligible IRA owner may exclude from gross income is $111,000 per person, an increase from $108,000 in 2025 (Source: IRS Notice 2025-67, Internal Revenue Bulletin 2025-49). This briefing documents the 2026 QCD limits, the underlying statutory rules, and the mechanics of the required minimum distribution (RMD) offset, using primary federal sources only.
QCD 2026: by the numbers
- $111,000 annual per-person QCD exclusion limit for 2026 (Source: IRS Notice 2025-67, IRB 2025-49)
- $222,000 combined 2026 ceiling for a married couple filing jointly when each spouse has an eligible IRA (Source: computed from IRS Notice 2025-67)
- $55,000 one-time split-interest entity QCD election limit for 2026 (Source: IRS Notice 2025-67, IRB 2025-49)
- 70 1/2 minimum age, on the date of the distribution, to make a QCD (Source: IRS Pub 590-B, 2025)
- $100,000 statutory base annual QCD limit before inflation indexing (Source: SECURE 2.0 Act sec. 307; CRS IF11377)
- $2.1 billion Joint Committee on Taxation estimated revenue loss for the SECURE 2.0 sec. 307 QCD provisions, FY2023 to FY2032 (Source: CRS IF11377 citing JCT)
- 2025 first tax year in which IRA custodians must report QCDs with a specific code on Form 1099-R (Source: CRS IF11377)
- ~10% share of taxpayers the JCT estimated would itemize on 2024 returns, down from an IRS-estimated 31 percent in 2017 (Source: CRS IF11377)
What a QCD is, and the key 2026 figure
A qualified charitable distribution is a direct transfer from an individual retirement account (IRA) to an eligible charity that is excluded from the IRA owner’s gross income, subject to an annual dollar limit. The governing statute is Internal Revenue Code section 408(d)(8), added by the Pension Protection Act of 2006 (P.L. 109-280, sec. 1201), made permanent by the PATH Act of 2015 (Division Q, P.L. 114-113), and amended by the SECURE 2.0 Act of 2022 (Division T of the Consolidated Appropriations Act, 2023, P.L. 117-328, sec. 307) (Source: CRS IF11377; IRC 408(d)(8)).
For 2026, IRS Notice 2025-67 states that the aggregate amount of qualified charitable distributions not includible in gross income under section 408(d)(8)(A) “is increased from $108,000 to $111,000” (Source: IRS Notice 2025-67, IRB 2025-49). The Congressional Research Service corroborates this figure: “In 2026, the maximum QCD is $111,000 (increased from $108,000 in 2025)” (Source: CRS IF11377, updated January 15, 2026).
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Note on data hygiene: some automated search results circulating for 2026 reported values such as $108,000 or figures in the $115,000 range. The authoritative IRS notice and the CRS report both confirm $111,000 for tax year 2026. The $100,000 figure that still appears in some older narrative material is the pre-indexing statutory base, not the current indexed amount (Source: IRS Notice 2025-67; CRS IF11377).
The 2026 QCD limits in detail
Two separate dollar caps apply under section 408(d)(8). The first is the annual per-person exclusion limit. The second is a one-time, lifetime election for a distribution made to a split-interest entity, created by SECURE 2.0 and effective for tax years beginning after December 29, 2022. Both are indexed for inflation and rounded to the nearest $1,000 (Source: IRS Notice 2025-67; SECURE 2.0 sec. 307; CRS IF11377).
Annual QCD exclusion limit, IRC section 408(d)(8)(A)
| Tax year | Annual QCD limit (per person) | MFJ combined (both spouses, own IRAs) | Status | Primary source |
|---|---|---|---|---|
| 2023 | $100,000 | $200,000 | Statutory base, not yet indexed | SECURE 2.0 sec. 307; IRC 408(d)(8) |
| 2024 | $105,000 | $210,000 | First indexed year | IRS Notice 2023-75 (IRB 2023-47) |
| 2025 | $108,000 | $216,000 | Indexed | IRS Notice 2024-80 (IRB 2024-47) |
| 2026 | $111,000 | $222,000 | Indexed (current) | IRS Notice 2025-67 (IRB 2025-49) |
A married couple filing jointly, where both spouses are age-eligible and each has a separate IRA, can each exclude up to $111,000 for 2026, for a combined ceiling of $222,000 (Source: computed from IRS Notice 2025-67; corroborating context from Ed Slott, irahelp.com). The limit is per person, not per couple, and it applies to the aggregate of an individual’s QCDs across all of that person’s IRAs.
One-time split-interest entity limit, IRC section 408(d)(8)(F)(i)(II)
SECURE 2.0 created a separate, one-time election allowing a QCD to be made to a split-interest entity. For 2026, IRS Notice 2025-67 states that the amount not includible under section 408(d)(8)(F)(i)(II) pursuant to a one-time election “is increased from $54,000 to $55,000” (Source: IRS Notice 2025-67, IRB 2025-49). Split-interest entities are a charitable remainder annuity trust (CRAT), a charitable remainder unitrust (CRUT) under IRC section 664(d), or a charitable gift annuity (Source: IRS Notice 2025-67; CRS IF11377).
| Tax year | One-time SIE limit (lifetime, per person) | Status | Primary source |
|---|---|---|---|
| 2023 | $50,000 | Statutory base; effective for tax years beginning after Dec. 29, 2022 | SECURE 2.0 sec. 307 |
| 2024 | $53,000 | Indexed | IRS Notice 2023-75 |
| 2025 | $54,000 | Indexed | IRS Notice 2024-80 (IRB 2024-47) |
| 2026 | $55,000 | Indexed (current) | IRS Notice 2025-67 (IRB 2025-49) |
A load-bearing point that is frequently misunderstood: the split-interest amount counts within the annual QCD cap, not on top of it. A one-time $55,000 QCD to a split-interest entity in 2026 uses $55,000 of the $111,000 annual ceiling for that person that year (Source: IRS Notice 2025-67; CRS IF11377).
The core rules of a QCD
Beyond the dollar limits, four rules define whether a distribution qualifies. Each is documented in IRS Publication 590-B (2025 edition) and corroborated by the Congressional Research Service.
Age requirement: 70 1/2 on the date of distribution
The IRA owner must be at least age 70 1/2 on the date the distribution is made (Source: IRS Pub 590-B, 2025; CRS IF11377: “The individual must be 70 1/2 or older when the QCD is made”). This is a distinct threshold from the RMD beginning age, which changed under SECURE 2.0. The QCD age of 70 1/2 did not change.
Direct transfer (trustee-to-trustee) requirement
The distribution must be a direct transfer from the IRA trustee or custodian to a qualified charity. IRS Publication 590-B (2025) describes a QCD as a nontaxable distribution made directly by the trustee of the IRA, other than an ongoing SEP or SIMPLE IRA, to an organization eligible to receive tax-deductible contributions (Source: IRS Pub 590-B, 2025). The Congressional Research Service states, “The distribution must be a trustee-to-trustee transfer, that is, a direct transfer from the IRA to the charity” (Source: CRS IF11377). Funds that pass through the account owner do not qualify. QCDs must come from IRAs, not from 401(k) or 403(b) plans (Source: CRS IF11377; IRS Pub 590-B, 2025).
Income exclusion and no double benefit
A QCD is excluded from the IRA owner’s gross income up to the annual limit. Because it is excluded, no charitable deduction may also be claimed for the same amount. IRS Publication 590-B (2025) cautions that a taxpayer cannot claim a charitable contribution deduction for any QCD that is not included in income (Source: IRS Pub 590-B, 2025). The IRS newsroom guidance frames the same point as a single-path choice: a taxpayer must declare the QCD as income to instead claim the charitable contribution as a deduction (Source: IRS, “Seniors can reduce their tax burden by donating to charity through their IRA”).
Interaction with the 60-percent-of-AGI charitable limit
QCDs do not count toward the 60-percent-of-AGI itemized charitable deduction limitation. This lets charitable giving via an IRA occur in excess of 60 percent of AGI, a structural feature of the exclusion mechanism (Source: CRS IF11377).
The RMD offset: how a QCD satisfies the required minimum distribution
The central planning feature of a QCD is that it counts toward the IRA owner’s required minimum distribution for the year. IRS Publication 590-B (2025) states that a qualified charitable distribution will count toward the required minimum distribution (Source: IRS Pub 590-B, 2025). The IRS IRA Distributions FAQ confirms, “Yes, your qualified charitable distributions can satisfy all or part [of] the amount of your required minimum distribution from your IRA” (Source: IRS, Retirement Plans FAQs Regarding IRAs Distributions).
The RMD-offset value is defined as the dollar amount of a taxpayer’s RMD that a QCD satisfies while being excluded from gross income. The mechanics can be stated as a formula:
- RMD offset = min(QCD amount, RMD for the year), with QCD amount not exceeding the annual QCD limit.
- Taxable remaining RMD = max(0, RMD for the year minus QCD amount).
Because the QCD is excluded from gross income under IRC section 408(d)(8), the offset amount reduces adjusted gross income relative to taking the RMD as ordinary income (Source: IRS Pub 590-B, 2025; IRC 408(d)(8)).
Worked example (CRS inputs)
The Congressional Research Service provides a worked example. An individual required to take a $5,000 RMD may elect a $3,000 QCD and then withdraw and include in income only the remaining $2,000 (Source: CRS IF11377).
| Component | Amount | Treatment |
|---|---|---|
| RMD for the year | $5,000 | Total required distribution |
| QCD elected | $3,000 | Excluded from gross income; satisfies that portion of the RMD |
| RMD offset = min($3,000, $5,000) | $3,000 | Counts toward the RMD, not included in income |
| Taxable remaining RMD | $2,000 | Must still be withdrawn and included in income |
The maximum 2026 RMD-offset ceiling for one person is the annual QCD limit of $111,000; the offset is capped by whichever is smaller, the actual RMD or $111,000. For a married couple filing jointly with separate IRAs and separate RMDs, the combined ceiling is $222,000 (Source: computed from IRS Notice 2025-67 and IRS Pub 590-B, 2025). For background on how required minimum distributions themselves are calculated, see the Q3 Advisors reference on required minimum distributions in 2026.
QCD versus take-the-RMD-then-itemize
The documented distinction between the two paths is the difference between an income exclusion and a Schedule A deduction. A QCD is excluded from gross income, which lowers AGI and benefits both itemizers and standard-deduction filers. The alternative, taking the full RMD into income and then donating, produces a tax benefit only if the taxpayer itemizes on Schedule A and the gift exceeds the marginal value of the standard deduction (Source: IRS Pub 590-B, 2025; IRS newsroom guidance).
Because a QCD reduces AGI, it can also reduce AGI-linked items. These include the taxable portion of Social Security benefits and Medicare income-related monthly adjustment amount (IRMAA) surcharges. The AGI-exclusion versus Schedule-A-deduction distinction is the documented benefit; the size of any dollar saving depends on the taxpayer’s bracket, itemize-versus-standard status, state tax, and AGI-linked thresholds, so a single universal figure is not an IRS-published fact (Source: IRS Pub 590-B, 2025). Related Q3 Advisors references include Medicare IRMAA 2026 brackets and premiums and taxation of Social Security benefits in 2026.
Why the standard-deduction shift raises the relative value of QCDs
The context that shapes 2026 QCD attractiveness is the ongoing decline in itemizing. The Joint Committee on Taxation estimated that roughly 10 percent of taxpayers would itemize on 2024 returns, down from an IRS-estimated 31 percent in 2017 (Source: CRS IF11377). The FY2025 reconciliation law (P.L. 119-21) made the higher standard deduction permanent and added a non-itemized charitable deduction of up to $1,000 starting in 2026 and a $6,000 senior deduction for taxpayers age 65 and older for 2025 through 2028 that phases out with income (Source: CRS IF11377). For standard-deduction filers age 70 1/2 and older, an exclusion-based path can therefore carry relative value that a Schedule A deduction cannot, because most such filers do not itemize (Source: CRS IF11377). See also the Q3 Advisors reference on the senior deduction and standard deduction in 2026.
Statutory history and indexing logic
QCDs originate in IRC section 408(d)(8), added by the Pension Protection Act of 2006 and made permanent by the PATH Act of 2015. SECURE 2.0 Act section 307 did two things: it made the previously fixed $100,000 annual QCD limit subject to annual inflation indexing beginning in tax year 2024, and it created the new one-time split-interest QCD election with a $50,000 base, also indexed (Source: SECURE 2.0 sec. 307; CRS IF11377; IRC 408(d)(8)).
The indexing logic is straightforward at the output level. The base amounts are $100,000 (annual) and $50,000 (one-time SIE). Each year an inflation adjustment is applied and the result is rounded to the nearest $1,000, and the IRS publishes the resulting figure in an annual notice. The underlying cost-of-living multipliers are not disclosed in the notices; only the rounded outputs are published: $105,000, $108,000, and $111,000 for the annual limit, and $53,000, $54,000, and $55,000 for the split-interest limit across 2024 through 2026 (Source: IRS Notices 2023-75, 2024-80, 2025-67; SECURE 2.0 sec. 307). For a broader summary of the statute, see the Q3 Advisors reference on SECURE 2.0 Act provisions.
Usage data: what is and is not published
There is no standalone IRS Statistics of Income (SOI) series reporting QCD counts or aggregate QCD dollars. The reason is that, until tax year 2025, QCDs were reported on Form 1099-R as regular IRA distributions with no distinguishing code, so they were not separately captured. Per the Congressional Research Service, “Starting in tax year 2025, IRA custodians must report QCDs using a specific code on IRS Form 1099-R. Prior to this change, QCDs were reported as regular distributions from IRAs” (Source: CRS IF11377). The IRS SOI IRA tables contain no QCD-specific breakout (Source: IRS SOI, Accumulation and Distribution of Individual Retirement Arrangements).
The closest verifiable federal quantification of QCD magnitude is the set of Joint Committee on Taxation revenue-loss (tax expenditure) estimates for the various QCD provisions, as reported by CRS.
| QCD-related provision | JCT estimated revenue loss | Period |
|---|---|---|
| SECURE 2.0 sec. 307 (indexing + split-interest) | $2.1 billion | FY2023 to FY2032 |
| PATH Act of 2015 (permanent QCD) | $8.8 billion | FY2015 to FY2025 |
| P.L. 113-295 (2014 extension) | $384 million | FY2015 to FY2024 |
| P.L. 112-240 (2012 extension) | $1.3 billion | FY2013 to FY2022 |
| P.L. 111-312 (2010 extension) | $979 million | FY2011 to FY2020 |
| P.L. 110-343 (2008 extension) | $795 million | FY2009 to FY2018 |
All revenue-loss figures above are as quoted in CRS IF11377, which cites the Joint Committee on Taxation (Source: CRS IF11377).
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Frequently asked questions
What is the QCD limit for 2026?
The 2026 annual QCD exclusion limit is $111,000 per person, increased from $108,000 in 2025 (Source: IRS Notice 2025-67, IRB 2025-49).
What was the QCD limit in 2025?
The 2025 annual QCD limit was $108,000 per person, stated as the prior-year figure in Notice 2025-67 (Source: IRS Notice 2025-67; IRS Pub 590-B, 2025).
What is the 2026 one-time split-interest QCD limit?
The 2026 one-time split-interest entity election limit is $55,000, increased from $54,000 in 2025 (Source: IRS Notice 2025-67, IRB 2025-49).
Does the split-interest amount add to the annual QCD limit?
No. The split-interest amount counts within the annual QCD cap, not on top of it. A $55,000 split-interest QCD in 2026 uses $55,000 of the $111,000 annual ceiling for that person that year (Source: IRS Notice 2025-67; CRS IF11377).
What age must I be to make a QCD?
You must be at least age 70 1/2 on the date the distribution is made (Source: IRS Pub 590-B, 2025; CRS IF11377).
Does a QCD count toward my required minimum distribution?
Yes. IRS Publication 590-B (2025) states that a qualified charitable distribution will count toward your required minimum distribution, and the IRS IRA Distributions FAQ confirms a QCD can satisfy all or part of the RMD (Source: IRS Pub 590-B, 2025; IRS Retirement Plans FAQs Regarding IRAs Distributions).
How does the RMD offset work numerically?
The RMD offset equals the smaller of the QCD amount and the RMD for the year. In the CRS example, a person with a $5,000 RMD who elects a $3,000 QCD offsets $3,000 and must still withdraw and include $2,000 in income (Source: CRS IF11377).
Can a QCD exceed my RMD?
A QCD can be made up to the annual QCD limit of $111,000 for 2026, which may be larger than an individual RMD; the offset itself is capped at the amount of the RMD (Source: IRS Notice 2025-67; IRS Pub 590-B, 2025).
Must the money go directly to the charity?
Yes. A QCD must be a direct trustee-to-trustee transfer from the IRA to a qualified charity; funds that pass through the owner do not qualify (Source: IRS Pub 590-B, 2025; CRS IF11377).
Can I also deduct a QCD as a charitable contribution?
No. Because a QCD is excluded from gross income, no charitable deduction may be claimed for the same amount (Source: IRS Pub 590-B, 2025).
Which accounts can a QCD come from?
QCDs come from IRAs. They cannot be made from an ongoing SEP or SIMPLE IRA, and they cannot be made from 401(k) or 403(b) plans (Source: IRS Pub 590-B, 2025; CRS IF11377).
Can both spouses each make a full QCD?
Yes, if each spouse is age-eligible and has a separate IRA. Each can exclude up to $111,000 for 2026, for a combined ceiling of $222,000 (Source: computed from IRS Notice 2025-67).
What is the statutory base QCD limit?
The base annual limit is $100,000 under IRC section 408(d)(8); SECURE 2.0 sec. 307 indexed it for inflation beginning in 2024 (Source: SECURE 2.0 sec. 307; CRS IF11377).
When did QCD indexing begin?
Inflation indexing of the annual limit began in tax year 2024, producing $105,000 (2024), $108,000 (2025), and $111,000 (2026) (Source: IRS Notices 2023-75, 2024-80, 2025-67).
What are split-interest entities?
They are a charitable remainder annuity trust (CRAT), a charitable remainder unitrust (CRUT) under IRC section 664(d), or a charitable gift annuity (Source: IRS Notice 2025-67; CRS IF11377).
Is the split-interest election a one-time election?
Yes. It is a one-time, lifetime election created by SECURE 2.0 and effective for tax years beginning after December 29, 2022 (Source: SECURE 2.0 sec. 307; CRS IF11377).
Do QCDs count toward the 60-percent-of-AGI charitable limit?
No. QCDs do not count toward the 60-percent-of-AGI itemized charitable deduction limit (Source: CRS IF11377).
How can a QCD affect Medicare or Social Security amounts?
Because a QCD is excluded from gross income, it can lower AGI, which can in turn affect AGI-linked items such as taxable Social Security and Medicare IRMAA surcharges. The direction is documented; the dollar effect depends on the individual’s facts (Source: IRS Pub 590-B, 2025).
How is QCD usage tracked by the IRS?
Starting in tax year 2025, IRA custodians must report QCDs with a specific code on Form 1099-R. Before that, QCDs were reported as regular distributions, so no separate SOI usage series exists (Source: CRS IF11377).
Is there published data on total QCD dollars?
There is no standalone IRS Statistics of Income series for QCD counts or dollars. The closest federal quantification is JCT revenue-loss estimates, such as $2.1 billion for the SECURE 2.0 sec. 307 provisions over FY2023 to FY2032 (Source: CRS IF11377 citing JCT).
Where is the 2026 figure officially published?
The 2026 limits appear in IRS Notice 2025-67, published in Internal Revenue Bulletin 2025-49, and are corroborated by CRS report IF11377 updated January 15, 2026 (Source: IRS Notice 2025-67; CRS IF11377).
Did the QCD rules themselves change for 2026?
The dollar limits rose with indexing, but the core rules (age 70 1/2, direct transfer, income exclusion, RMD offset) are unchanged; the current authoritative published edition consulted is IRS Pub 590-B (2025) (Source: IRS Pub 590-B, 2025; IRS Notice 2025-67).
Sources
IRS Notice 2025-67, Internal Revenue Bulletin 2025-49 (2026 amounts): https://www.irs.gov/irb/2025-49_IRB and https://www.irs.gov/pub/irs-drop/n-25-67.pdf . IRS Notice 2024-80, IRB 2024-47 (2025 amounts): https://www.irs.gov/irb/2024-47_IRB . IRS Notice 2023-75 (2024 amounts): https://www.irs.gov/pub/irs-drop/n-23-75.pdf . IRS Publication 590-B (2025): https://www.irs.gov/publications/p590b and https://www.irs.gov/pub/irs-pdf/p590b.pdf . IRS Retirement Plans FAQs Regarding IRAs Distributions: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals . IRS newsroom, “Seniors can reduce their tax burden by donating to charity through their IRA”: https://www.irs.gov/newsroom/seniors-can-reduce-their-tax-burden-by-donating-to-charity-through-their-ira . IRS Statistics of Income, Accumulation and Distribution of Individual Retirement Arrangements: https://www.irs.gov/statistics/soi-tax-stats-accumulation-and-distribution-of-individual-retirement-arrangements . Congressional Research Service, “Qualified Charitable Distributions from Individual Retirement Accounts (IRAs),” IF11377 (updated January 15, 2026): https://www.congress.gov/crs-product/IF11377 . Statutory basis: IRC section 408(d)(8); Pension Protection Act of 2006 (P.L. 109-280, sec. 1201); PATH Act of 2015 (P.L. 114-113); SECURE 2.0 Act of 2022 (P.L. 117-328, sec. 307). Joint Committee on Taxation revenue-loss figures as quoted in CRS IF11377.
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Disclaimer
This material is provided by Q3 Advisors, a registered investment adviser, for informational and educational purposes only. It is not investment, legal, or tax advice, nor a recommendation or solicitation to buy or sell any security or to adopt any strategy. Information is believed to be from reliable sources as of the dates cited, but its accuracy is not guaranteed and figures are subject to change. Past performance does not guarantee future results, and the value of investments can go down as well as up. Registration with the SEC or a state does not imply a certain level of skill or training. See Q3 Advisors’ Form ADV Part 2A for information on services, fees, and conflicts of interest. Readers should consult their own qualified tax, legal, or financial advisor before making any decisions.
