Qualified Charitable Distributions From an IRA

Many retirees give faithfully from their checking account while their IRA sits untouched until required withdrawals begin. Then the withdrawals start, the income shows up on the return, and the gifts from checking often count for little on the return, because many retirees no longer itemize. Starting in 2026, people who do not itemize may deduct a small amount of direct cash gifts, but that amount is capped.

There is a tool made for exactly this situation. It is called a qualified charitable distribution, or QCD, and for givers who qualify it can be one of the cleanest ways to give there is.

What a QCD Is

A qualified charitable distribution is money sent directly from your IRA to an eligible charity. Because the money goes straight from the IRA custodian to the charity, it is generally left out of your taxable income altogether.

That is the key difference from withdrawing the money and then giving it. With a regular withdrawal, you report the income and then hope a deduction offsets it, which only works if you itemize. With a QCD, the income generally never shows up in the first place. That is why QCDs can help people who take the standard deduction.

Who Qualifies

The rules are specific. Here are the main ones.

• You must be at least 70½ on the day of the distribution.
• The money must come from an IRA. Employer plans like 401(k)s generally do not qualify unless rolled into an IRA first. Active SEP and SIMPLE IRAs generally do not qualify either.
• The distribution must go directly from the custodian to the charity. Money that passes through your hands first generally does not count.
• There is an annual limit per person, indexed for inflation. For 2026 it is a little over $100,000. Your custodian or CPA can confirm the exact figure.

Married couples who each have their own IRA can each make QCDs up to the limit from their own accounts, once each spouse is 70½.

The Connection to Required Distributions

Once you reach the age for required minimum distributions, currently 73 for most people, the IRS requires you to take a certain amount out of your IRA each year. A QCD generally counts toward that requirement.

So if you were going to give to your church anyway, and you have to take money out of your IRA anyway, a QCD can let one action do both jobs. Many retirees find this the most practical reason to use it. Note that QCDs are available starting at 70½, a few years before required distributions begin.

Where a QCD Can and Cannot Go

A QCD can go to most 501(c)(3) public charities, including churches. It cannot go to a donor-advised fund, a supporting organization, or most private foundations. This surprises a lot of people who already give through a DAF.

One simple pattern is to use QCDs for direct gifts to your church and other charities, and keep any donor-advised fund for other assets and other seasons. Unlike a regular gift, where a small benefit only reduces the deduction, a QCD that returns any benefit to you can lose its QCD treatment entirely.

How to Make One

The process runs through your IRA custodian, and a little planning keeps it clean.

1. 1

   Confirm the Charity

   Get the charity’s legal name, EIN, and mailing address, and confirm it is an eligible public charity.

2. 2

   Ask Your Custodian

   Request a QCD using their form. Some send a check payable to the charity, and some can send it electronically.

3. 3

   Tell the Charity

   Let them know a gift is coming from your IRA, so they credit it correctly and know whom to thank.

4. 4

   Get the Acknowledgment

   For any gift of $250 or more, get a written acknowledgment stating no goods or services were received.

Timing matters near year-end. The distribution has to leave the IRA by December 31 to count for that year, and custodians have their own processing times. Starting in the fall is wise.

Report It Correctly

Here is a detail that trips people up. The Form 1099-R from your custodian may report the full distribution, and not every custodian marks it as a QCD. It is up to you and your CPA to report it correctly on your return, so the charitable part is excluded.

Keep the charity's acknowledgment and a record of the distribution together, and hand both to your CPA. Lower reported income can sometimes affect other parts of a retiree's return, too, such as how much of Social Security is taxed, depending on your full situation.

One gentle word: a QCD is a tool for faithful giving, not a reason to give. If your IRA is what you need to live on, providing for your household is faithful too.