Sending an IRA distribution directly to charity does something a regular withdrawal followed by a separate donation can’t — it excludes the amount from taxable income entirely, not just as a deduction.
How it works
A QCD sent directly from the IRA custodian to a qualified charity counts toward satisfying the RMD, up to the annual QCD limit, while being fully excluded from taxable income. Any RMD amount not covered by the QCD is still taxable as ordinary income.
What this does not include
The funds must go directly from the IRA custodian to the charity — a distribution paid to the account owner who then donates it doesn’t qualify as a QCD, even if the dollar amount matches exactly.
How to use this calculator
- Enter your age, this year’s RMD, and the QCD amount.
- Enter the current-year annual QCD limit.
Frequently asked questions
Can a QCD be larger than my RMD?
Yes — the excess above the RMD is still excluded from income (up to the annual QCD limit), it simply isn’t needed to satisfy the RMD requirement itself.
At what age can I start making QCDs?
70½, which is younger than the RMD starting age for many taxpayers under current law — a QCD can reduce future RMDs even before RMDs are required.
Does a QCD show up as a deduction on my tax return?
No — it’s excluded from income at the source rather than claimed as an itemized deduction, which means it helps even taxpayers who take the standard deduction.
