Qualified Charitable Distribution (QCD)

Giving directly from an IRA can satisfy your RMD without adding to taxable income. See the tax it saves.

Your numbers

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Tax saved

Versus a taxable RMD
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A qualified charitable distribution sends money straight from your IRA to a charity. It counts toward your required minimum distribution but is excluded from taxable income, which can also lower income-based costs like IRMAA and the taxation of Social Security. You must be 70.5 or older and the gift must go directly to a qualifying charity. Not tax advice.
About this calculator

Qualified Charitable Distribution (QCD)

Estimates the income tax saved by giving directly from your IRA to charity as a Qualified Charitable Distribution instead of taking a taxable required distribution.

How a QCD lowers your tax

A QCD lets you send money straight from your IRA to a qualifying charity, and that amount counts toward your required minimum distribution while staying out of your taxable income. Because it never lands on your tax return as income, the rough tax saved equals the amount excluded times your marginal rate. This can also help keep your income below thresholds that trigger higher Medicare premiums (IRMAA) and more Social Security taxation. You must be at least 70.5 years old and the funds must go directly to the charity, not to you first.

Limits and rules to know

For 2025 the QCD cap is 108,000 per person, and it applies to traditional IRAs rather than 401(k) or active SEP and SIMPLE plans. Donor advised funds and private foundations generally do not qualify as recipients. Because you exclude the income, you cannot also claim a charitable deduction for the same gift, so there is no double benefit. This tool gives estimates only and is not tax advice; confirm details with your custodian and tax professional.

How to use it

  1. Enter the amount you want to give directly from your IRA.
  2. Enter your required distribution for the year.
  3. Enter your marginal tax rate.
  4. Review the estimated tax saved versus taking the distribution as taxable income.

Frequently asked questions

Do I have to be taking RMDs to use a QCD?

No, you can make a QCD once you reach age 70.5, even though required minimum distributions do not begin until age 73. The QCD still reduces future taxable income.

Can I claim a charitable deduction on top of the QCD?

No, you cannot deduct a gift that was already excluded from income through a QCD. The exclusion is the benefit, so claiming both would be double counting.

Does the money have to go straight to the charity?

Yes, the funds must transfer directly from your IRA custodian to a qualifying charity. If the check is made out to you first, it does not qualify as a QCD.

See the exact formula and a worked example on our methodology page.

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