What is a qualified charitable distribution, and how does it work?
Answer: A qualified charitable distribution (QCD) lets an IRA owner age 70½ or older transfer funds directly from an eligible IRA to a qualifying charity. Within annual limits, it excludes otherwise taxable distributions from income and can satisfy all or part of your required minimum distribution. You cannot also claim a charitable deduction for the excluded amount.
By Edward Papier, CIMA, CF2, CM&AA · Last updated November 5, 2026
How much can I give through a QCD?
The annual limit started at $100,000 per person and has been indexed for inflation since 2024, so it rises slightly each year. A married couple with separate IRAs can each give up to the limit. A one-time QCD to certain split-interest arrangements, such as a charitable remainder trust, is also allowed, within a smaller limit.
Can a QCD go to a donor-advised fund?
No. Qualified charitable distributions cannot go to donor-advised funds, private foundations or supporting organizations. They must go directly from the IRA to an eligible public charity. If you want to give through a donor-advised fund, consider giving appreciated stock from a taxable account instead.
How do I make a QCD?
Ask your IRA custodian to send the money directly to the charity; a check made out to you does not count. Get a written acknowledgment from the charity. Your custodian will report the full distribution on Form 1099-R, so when you file, report it as a QCD to exclude it from income. Complete it by December 31 to count for that year's RMD.
Talk to us
To talk through your own situation, please call 212-697-3930, email ep@amadeuswealth.com, or schedule a meeting at calendly.com/ep-awa.
Edward Papier, CIMA, CF2, CM&AA
President, Amadeus Wealth Alternatives, Hackensack, NJ
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