For tax year 2026, the QCD limit is $111,000 per person, up from $108,000 in 2025, according to IRS Notice 2025-67 (Internal Revenue Bulletin 2025-49). A qualified charitable distribution (QCD) lets an IRA owner age 70 1/2 or older send money straight from an IRA to charity, exclude it from gross income, and count it toward the year’s required minimum distribution. This guide covers the 2026 dollar limits, who is eligible, the RMD offset, donor-advised fund rules, the December 31 deadline, and how to report a QCD.
The 2026 QCD limit is $111,000 per person, or $222,000 for a married couple filing jointly when each spouse has an eligible IRA. A separate one-time election of up to $55,000 for a split-interest entity counts within, not on top of, that annual cap. To qualify, the IRA owner must be at least 70 1/2 on the distribution date and use a direct trustee-to-trustee transfer (Source: IRS Notice 2025-67).
What is the QCD limit for 2026?
The QCD limit for 2026 is $111,000 per person, an increase from $108,000 in 2025 (Source: IRS Notice 2025-67, IRB 2025-49). Married couples filing jointly can each use the full amount when both spouses are age-eligible and each owns an IRA, for a combined ceiling of $222,000. A one-time split-interest entity election is capped at $55,000 for 2026, drawn from the annual limit.
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Some sources still cite $108,000 as the current cap, or the pre-indexing $100,000 base as if it applied today. For 2026, the correct annual figure is $111,000, published by the IRS and corroborated by Congressional Research Service report IF11377 (updated January 2026).
What is a qualified charitable distribution?
A qualified charitable distribution is a direct transfer from an IRA to an eligible public charity that the IRS excludes from the IRA owner’s gross income, up to an annual dollar limit. The rule lives in Internal Revenue Code section 408(d)(8), created by the Pension Protection Act of 2006 and amended by the SECURE 2.0 Act of 2022 (Source: IRC 408(d)(8); CRS IF11377).
Because the money never enters taxable income, a QCD lowers adjusted gross income (AGI) rather than acting as a Schedule A itemized deduction. That mechanism is what makes a QCD useful even for filers who take the standard deduction. For a deeper walkthrough of the mechanics, see the Q3 Advisors explainer on how qualified charitable distributions reduce taxes.
What are the 2026 QCD limits in detail?
Section 408(d)(8) sets two separate 2026 caps. The annual per-person exclusion is $111,000. A one-time, lifetime election for a distribution to a split-interest entity is $55,000. Both amounts are indexed for inflation and rounded to the nearest $1,000. The split-interest amount is taken from the annual cap, so using it does not raise the $111,000 ceiling (Source: IRS Notice 2025-67; SECURE 2.0 sec. 307).
Annual per-person exclusion ($111,000) and MFJ ($222,000)
The annual QCD exclusion for 2026 is $111,000 per person. The limit is per individual, not per couple, and it applies to the aggregate of a person’s QCDs across all of that person’s IRAs. Two spouses who each qualify and each own an IRA can exclude up to $111,000 apiece, for a combined $222,000 (Source: IRS Notice 2025-67, IRB 2025-49).
| Tax year | Annual QCD limit (per person) | MFJ combined (each spouse owns an IRA) | Primary source |
|---|---|---|---|
| 2023 | $100,000 | $200,000 | SECURE 2.0 sec. 307 (base) |
| 2024 | $105,000 | $210,000 | IRS Notice 2023-75 |
| 2025 | $108,000 | $216,000 | IRS Notice 2024-80 |
| 2026 | $111,000 | $222,000 | IRS Notice 2025-67 |
One-time split-interest entity limit ($55,000)
SECURE 2.0 created a one-time election that lets a QCD fund a split-interest entity: a charitable remainder annuity trust (CRAT), a charitable remainder unitrust (CRUT) under IRC section 664(d), or a charitable gift annuity. For 2026, that election is capped at $55,000, up from $54,000 in 2025 (Source: IRS Notice 2025-67; CRS IF11377).
The point most often misunderstood: the split-interest amount counts within the annual cap. A one-time $55,000 split-interest QCD in 2026 uses $55,000 of that person’s $111,000 annual ceiling for the year.
| Tax year | One-time split-interest limit (lifetime, per person) | Primary source |
|---|---|---|
| 2023 | $50,000 | SECURE 2.0 sec. 307 (base) |
| 2024 | $53,000 | IRS Notice 2023-75 |
| 2025 | $54,000 | IRS Notice 2024-80 |
| 2026 | $55,000 | IRS Notice 2025-67 |
Who is eligible to make a QCD in 2026?
To make a QCD in 2026, the IRA owner must be at least age 70 1/2 on the date the distribution is made, not merely turning 70 1/2 that year (Source: IRS Pub 590-B, 2025; CRS IF11377). This age is separate from the RMD beginning age, which is 73 under current law. The QCD age of 70 1/2 did not change under SECURE 2.0.
Eligible and ineligible accounts differ by plan type:
- Eligible: traditional IRAs, rollover IRAs, and inherited IRAs.
- Not eligible: 401(k) and 403(b) plans, and ongoing (active) SEP or SIMPLE IRAs.
The charity must be an organization eligible to receive tax-deductible contributions; donor-advised funds and private foundations are excluded (Source: IRS Pub 590-B, 2025).
Does a QCD count toward my RMD?
Yes. A QCD 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, 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). The offset amount is excluded from income, so it also lowers AGI.
The offset works by a simple rule:
- RMD offset = the smaller of the QCD amount and the RMD for the year (with the QCD not exceeding $111,000 for 2026).
- Taxable remaining RMD = the RMD minus the QCD, but never below zero.
The Congressional Research Service gives this worked example: a person required to take a $5,000 RMD elects a $3,000 QCD, then withdraws and includes in income only the remaining $2,000 (Source: CRS IF11377).
| Component | Amount | Tax treatment |
|---|---|---|
| RMD for the year | $5,000 | Total required distribution |
| QCD elected | $3,000 | Excluded from income; satisfies that part of the RMD |
| RMD offset (smaller of $3,000 and $5,000) | $3,000 | Counts toward the RMD, not taxed |
| Taxable remaining RMD | $2,000 | Must still be withdrawn and taxed |
For how the required distribution itself is calculated, see the Q3 Advisors reference on required minimum distributions in 2026.
QCD vs. taking the RMD and then itemizing: which saves more in 2026?
The difference between the two paths is an income exclusion versus a Schedule A deduction. A QCD is excluded from gross income, which lowers AGI and helps every eligible donor, including standard-deduction filers. Taking the full RMD into income and then donating produces a tax benefit only if the taxpayer itemizes and the gift adds value beyond the 2026 standard deduction of $16,100 (single) or $32,200 (married filing jointly).
| Factor | QCD (income exclusion) | Take RMD, then itemize the gift |
|---|---|---|
| Where the benefit lands | Reduces AGI directly | Schedule A deduction, only if you itemize |
| Helps standard-deduction filers | Yes | No |
| Counts toward the RMD | Yes | The RMD stays fully taxable |
| Effect on AGI-linked items (IRMAA, taxable Social Security) | Can lower them | Does not lower AGI |
| 60%-of-AGI charitable ceiling | Does not apply | Applies |
Because a QCD lowers AGI, it can reduce AGI-linked costs such as Medicare income-related monthly adjustment amount (IRMAA) surcharges and net investment income tax exposure. The size of any dollar effect depends on the taxpayer’s bracket, filing status, and AGI thresholds, so no single universal figure applies.
Can a QCD go to a donor-advised fund?
No. Under current law a QCD cannot be directed to a donor-advised fund (DAF), a private foundation, or a supporting organization; those recipients are excluded from the QCD rule in IRC section 408(d)(8) (Source: IRS Pub 590-B, 2025). A QCD must go to a qualifying public charity or, under the one-time election, a split-interest entity.
As of 2026, a bipartisan bill in the U.S. Senate would let QCDs fund donor-advised funds, but it has not been enacted (reported by CNBC, March 2026). Until any such change becomes law, a gift routed to a DAF does not qualify as a QCD. Investors weighing DAF timing against other retirement-tax moves often compare it with a Roth conversion strategy.
What is the deadline to make a QCD?
The deadline to make a 2026 QCD is December 31, 2026. Unlike an IRA contribution, a QCD cannot be made after year-end and applied to the prior year. The distribution must actually leave the IRA by December 31 to count for that tax year (Source: IRS Pub 590-B, 2025).
Because a QCD requires a direct trustee-to-trustee transfer, allow processing time. Many custodians ask for requests weeks before year-end so the check clears in time. A QCD a custodian processes in early January generally counts for the new year, not the prior one.
How do I report a QCD on my 2026 tax return?
You report a QCD on Form 1040 using the IRA distribution lines. Enter the full IRA distribution on line 4a, enter only the taxable portion (the total minus the QCD) on line 4b, and write “QCD” next to line 4b. The IRA custodian does not reduce the amount on Form 1099-R, so this manual entry is how the exclusion reaches your return (Source: IRS Pub 590-B, 2025).
- Confirm the gift was a direct trustee-to-trustee transfer to a qualifying charity from an eligible IRA.
- Report the full IRA distribution on Form 1040, line 4a.
- Report the taxable portion (total distribution minus the QCD) on line 4b.
- Write “QCD” next to line 4b.
- Keep the charity’s written acknowledgment with your records.
Beginning with tax year 2025, IRA custodians must flag QCDs with a new distribution Code Y on Form 1099-R, which gives the IRS a specific marker that did not exist before (Source: CRS IF11377).
Why the 2026 tax changes raise the relative value of QCDs
The 2026 backdrop makes the exclusion path more valuable for many retirees because fewer taxpayers itemize. 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). For a standard-deduction filer, a Schedule A charitable deduction delivers no benefit, while a QCD still lowers AGI.
The FY2025 reconciliation law (P.L. 119-21) kept the higher standard deduction, added an above-the-line charitable deduction for non-itemizers of up to $1,000 (single) or $2,000 (married filing jointly) starting in 2026, and created a $6,000 senior deduction for taxpayers age 65 and older for 2025 through 2028 that phases out with income (Source: CRS IF11377). None replaces the AGI-lowering effect of a QCD, so the exclusion keeps its distinct role. Retirees often model charitable giving alongside how much to convert to Roth in a given year.
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Frequently asked questions
What is the QCD limit for 2026?
The 2026 QCD limit is $111,000 per person, increased from $108,000 in 2025 (Source: IRS Notice 2025-67, IRB 2025-49). Married couples filing jointly can each use the full amount when both are age-eligible and each owns an IRA, for a combined $222,000. A one-time split-interest entity election of up to $55,000 counts within that annual cap.
Can a QCD go to a donor-advised fund?
No. Under current law a QCD cannot go to a donor-advised fund, a private foundation, or a supporting organization; those recipients are excluded from IRC section 408(d)(8) (Source: IRS Pub 590-B, 2025). As of 2026, a bipartisan Senate bill would allow QCDs to fund donor-advised funds, but it has not been enacted (reported by CNBC, March 2026).
At what age can you start making QCDs?
You can make a QCD once you are at least age 70 1/2 on the date the distribution is made (Source: IRS Pub 590-B, 2025; CRS IF11377). This threshold is separate from the required minimum distribution beginning age of 73, and it did not change under the SECURE 2.0 Act.
Does a QCD count as an RMD?
Yes. A QCD counts toward your required minimum distribution for the year, up to the amount of the RMD. In the CRS example, a person with a $5,000 RMD who makes a $3,000 QCD offsets $3,000 of the RMD and must still withdraw and include the remaining $2,000 in income (Source: IRS Pub 590-B, 2025; CRS IF11377).
How do I report a QCD on my tax return?
Report the full IRA distribution on Form 1040 line 4a, report only the taxable portion (the total minus the QCD) on line 4b, and write “QCD” next to line 4b (Source: IRS Pub 590-B, 2025). For tax year 2025 and later, custodians flag QCDs with Code Y on Form 1099-R.
What is the deadline to make a QCD?
The deadline is December 31 of the tax year; a QCD cannot be made after year-end and applied to the prior year (Source: IRS Pub 590-B, 2025). Because a QCD requires a direct trustee-to-trustee transfer, request it well before December 31 to allow custodian processing time.
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 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 figures are subject to change. 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. Consult your own qualified tax, legal, or financial advisor before making any decisions.
