QCD Deadline 2026: $111,000 Limit and the 0.5% Floor

The qualified charitable distribution 2026 deadline is December 31, 2026. If you're 70½ or older, the money has to leave your IRA and go straight to a qualifying charity by that date to count for 2026. You can give up to $111,000 this way, and each spouse has their own limit. The amount you give stays out of your taxable income entirely. That matters more in 2026 because people who itemize can now deduct only the charitable giving above 0.5% of their AGI. A QCD isn't touched by that floor, it counts toward your required minimum distribution, and it lowers your AGI. A lower AGI can help you keep the new senior deduction and stay under Medicare's income surcharges.

Last updated: October 24, 2026 · By Syed Kaja Moinudeen

Key takeaways

• The 2026 QCD limit is $111,000 per person, up from $108,000 in 2025. The one-time gift to a split-interest entity is capped at $55,000 (IRS Notice 2025-67).
• You must be at least 70½ on the day of the distribution, and the money has to go from your IRA trustee directly to the charity.
• Starting in 2026, itemizers can deduct only the giving above 0.5% of AGI. A QCD avoids that floor because it never shows up in income.
• A QCD counts toward your RMD, but only if it comes out before you've already withdrawn the RMD as cash.
• Don't wait until late December. Custodians need time to process requests, and you want the charity to have the money by December 31.

What a Qualified Charitable Distribution (QCD) Is and Who Qualifies (Age 70½, IRAs Only, Not 401(k)s)

A QCD is a gift your IRA custodian pays directly to a charity on your behalf. The IRS describes it as an otherwise taxable distribution from an IRA, other than an ongoing SEP or SIMPLE IRA, made by an owner who is 70½ or older and paid directly to a qualified charity (IRS IRA distribution FAQs).

Here's what that means in practice:

• Age 70½, not 73. RMDs now begin at 73 (IRS Publication 590-B), but you can start making QCDs at 70½.
• IRAs only. QCDs can't come straight out of a 401(k) or 403(b). If that's where your money is, you'd need to move some of it into an IRA first.
• Ongoing SEP and SIMPLE IRAs don't count. An IRA is "ongoing" if your employer contributes to it for the plan year ending in the year you'd make the gift.
• The money can't touch your hands. If the custodian pays you and you write the charity a check, it's an ordinary taxable withdrawal followed by a regular donation.
• No double dipping. Since the QCD is already excluded from your income, you can't also claim it as a charitable deduction (IRS newsroom).

2026 QCD Limits at a Glance: $111,000 Per Person, Married Couples, and the One-Time Split-Interest Gift

The IRS raised both QCD limits for 2026 in Notice 2025-67:

Item	2025	2026
Annual QCD exclusion, per person	$108,000	$111,000
Married couple, each spouse from their own IRA	Up to $216,000 combined	Up to $222,000 combined
One-time QCD to a split-interest entity (counts toward the annual limit)	$54,000	$55,000
Minimum age on the date of distribution	70½	70½

The limit belongs to each IRA owner. A couple can't pool their limits by sending $222,000 out of one spouse's IRA. Each spouse gives from their own account. The split-interest option is a one-time election that lets you send up to $55,000 to a charitable gift annuity or charitable remainder trust, which then pays you income. It uses up part of that year's $111,000 limit.

What Changed in 2026: The 0.5% AGI Floor and 35% Cap on Itemized Gifts, and Why QCDs Are Not Affected

The 2025 tax law (Public Law 119-21) changed how charitable deductions work for itemizers starting in 2026:

• 0.5% floor. If you itemize, you can deduct only the charitable contributions that exceed 0.5% of your AGI (IRS Publication 505). With an AGI of $150,000, your first $750 of giving gets no deduction.
• 35% cap for the top bracket. A new "2/37ths" rule reduces itemized deductions so that people in the 37% bracket get at most about 35 cents of tax benefit per deducted dollar. For 2026, the 37% bracket starts at $640,600 of taxable income for single filers and $768,700 for joint filers (Congressional Research Service).
• Non-itemizers get a small break. Starting in 2026, people who take the standard deduction can deduct up to $1,000 of cash gifts to charity, or $2,000 if married filing jointly. Gifts to donor-advised funds don't qualify (IRS Publication 505).

None of these rules affect a QCD, because a QCD isn't a deduction. The money is simply never counted as income, so there's nothing for the 0.5% floor or the 2/37ths reduction to cut. For someone in the top bracket, every QCD dollar stays out of income that would have been taxed at 37%, while the same dollar given by check returns roughly 35 cents at most.

QCD vs. Writing a Check: Side-by-Side Tax Examples for a $10,000, $25,000 and $50,000 Gift

These examples are simplified on purpose. Each one assumes a 22% marginal federal rate on all the dollars involved, and none of them include state taxes. Your actual numbers will be different.

Couple A files jointly, both spouses are 74, they take the standard deduction, and their AGI is $120,000 before any giving. Couple B also files jointly with both spouses over 65, but they itemize because of mortgage interest and property taxes. Their AGI is $200,000.

Scenario	Gift by check: deductible amount	Check: approx. tax saved	QCD: amount kept out of AGI	QCD: approx. tax saved
Couple A, $10,000 gift	$2,000 (non-itemizer cap)	$440	$10,000	$2,200
Couple A, $25,000 gift	$2,000 (non-itemizer cap)	$440	$25,000	$5,500
Couple B, $50,000 gift	$49,000 ($50,000 minus 0.5% of $200,000)	$10,780	$50,000	$11,000, plus AGI drops to $150,000

For Couple A, the difference is large. Writing a check gets them $2,000 of deduction at most, while a QCD keeps the whole gift out of their income. For Couple B, the direct tax gap is only $220, but the bigger payoff is the lower AGI, which is covered in the next section.

The Hidden Bonus: How a QCD Lowers AGI to Protect the $6,000 Senior Deduction and Avoid IRMAA Surcharges

The senior deduction. From 2025 through 2028, each person 65 or older can claim an extra $6,000 deduction, or $12,000 for a couple when both qualify. You get it whether you itemize or not. It starts to phase out once modified AGI goes above $75,000 for single filers or $150,000 for joint filers (IRS; Publication 554). Couple B's $200,000 AGI is well into the phase-out range. Their $50,000 QCD brings them down to $150,000, which is right at the threshold where the full deduction is still available. A check doesn't do that, because a deduction reduces taxable income but leaves AGI where it was.

Medicare IRMAA. Medicare Part B and Part D premiums go up when your modified AGI is above certain levels, and Medicare looks back two years to set them. For 2026 premiums, which are based on 2024 tax returns, the standard premium applies up to $109,000 of MAGI for single filers and $218,000 for joint filers. The first surcharge tier adds $81.20 a month to the $202.90 standard Part B premium (CMS). For IRMAA, MAGI means your AGI plus tax-exempt interest (SSA POMS). That means your 2026 QCD will affect the premiums you pay in 2028. The 2028 thresholds haven't been announced yet, but if your income is a few thousand dollars above a tier, a QCD can be a simple way to drop below it.

Using a QCD to Satisfy Your 2026 RMD (Order of Withdrawals Matters)

A QCD counts toward your required minimum distribution (IRS). The order you take money out still matters. Whatever leaves your IRA first counts toward the RMD. Say your RMD is $15,000 and you withdrew all of it as cash in February. A QCD in December is still tax-free, but it can't make that February withdrawal tax-free after the fact.

If you plan to give, ask for the QCD early in the year and take any cash you need after it. A QCD can also be larger than your RMD, up to the $111,000 limit. The amount above your RMD is still left out of income.

If you're still working and putting money into retirement accounts, take a look at the Roth catch-up rule changes for 2027, since they can affect how much of your income ends up taxable later.

The December 31, 2026 Deadline: Custodian Processing Times, Check-Clearing Rules, and Last-Minute Mistakes

A QCD counts in the year the money is distributed. In December, custodians are flooded with RMD and QCD requests, and some set their own internal cutoff dates ahead of New Year's Eve. Before you rely on any timing, ask your custodian two things:

1. What is your last date to accept a 2026 QCD request?
2. Do you send the money electronically, mail a check to the charity, or send a check to me to pass along?

If your custodian issues checkbook-style QCD checks or mails a check made out to the charity, the safest move is to have it in the charity's hands well before December 31. That way the custodian's records and the charity's receipt both show the same year. Mistakes people make in the last few weeks:

• Having the check made out to themselves instead of the charity
• Asking in late December after the custodian's cutoff has passed
• Giving to a donor-advised fund, which doesn't qualify
• Already taking the full RMD as cash, then expecting the QCD to replace it

Step-by-Step: How to Request a QCD and Report It on Form 1099-R and Form 1040

1. Confirm the charity qualifies. It has to be eligible to receive tax-deductible contributions.
2. Get your custodian's QCD form or online request. Give the charity's legal name, address, and EIN, and the exact dollar amount.
3. Decline withholding on the QCD. Tax withheld from it reduces what the charity receives.
4. Get a written acknowledgment from the charity stating the amount and confirming you received nothing in return.
5. Check your 2026 Form 1099-R when it arrives early in 2027. Box 1 will show the full distribution. Code Y, which identifies a QCD, is optional for custodians in tax year 2026 (IRS 1099-R instructions). Your form may not mention the QCD at all, so keep your own records.
6. Report it on Form 1040. Enter the total distribution on line 4a and only the taxable part on line 4b, which is zero if the whole thing was a QCD. The 2025 Form 1040 added a QCD checkbox on line 4c (Form 1040 instructions). Older guidance told you to write "QCD" next to line 4b. Follow whatever the 2026 instructions say.

What Doesn't Qualify: Donor-Advised Funds, Private Foundations, Inherited-IRA Nuances and Getting Something in Return

• Donor-advised funds and supporting organizations can't receive QCDs (IRS). The IRS also has limits for certain private foundations, so check before sending a QCD to one.
• Getting something in return. If you get a gala dinner, event tickets, or other perks for the gift, it can fail as a QCD. The entire amount has to be something you could otherwise fully deduct.
• Inherited IRAs. The IRS reporting codes include QCDs from inherited IRAs (code Y with code 4). The 70½ age test applies to you as the beneficiary, not to the person who died.
• 401(k) and 403(b) plans aren't eligible for QCDs directly.

Frequently Asked Questions

What is the qualified charitable distribution 2026 deadline?

December 31, 2026. The money has to be distributed from your IRA to the charity by that date to count for 2026. Custodians often set earlier internal cutoffs, so make your request weeks ahead.

How much can I give through a QCD in 2026?

Up to $111,000 per IRA owner. A married couple can give up to $222,000 if each spouse gives from their own IRA. The one-time split-interest QCD is capped at $55,000 and counts toward the annual limit.

Does the 0.5% AGI floor apply to QCDs?

No. The 0.5% floor only reduces itemized charitable deductions. A QCD is excluded from income rather than deducted, so the floor and the 35% cap for top-bracket filers do not reduce it.

Can a QCD count toward my 2026 RMD?

Yes. A QCD counts toward your required minimum distribution. Make the QCD before taking other withdrawals, because the first dollars out of the IRA count toward the RMD first.

Do I need to be 73 to make a QCD?

No. You must be at least 70½ on the date of the distribution. Age 73 is when RMDs begin, but QCDs are allowed earlier.

Can I make a QCD from my 401(k)?

No. QCDs must come from an IRA. Ongoing SEP and SIMPLE IRAs are also excluded. You would need to move money into an IRA first.

Can I send a QCD to a donor-advised fund?

No. Donor-advised funds and supporting organizations are not eligible to receive QCDs.

Will my Form 1099-R show the QCD?

Maybe not. Box 1 shows the full distribution, and for tax year 2026 the code Y that flags a QCD is optional for custodians. You are responsible for reporting the QCD correctly on Form 1040.

Sources

• IRS Notice 2025-67: 2026 retirement plan and IRA amounts
• IRS Publication 590-B, Distributions from IRAs
• IRS Retirement Plans FAQs on IRA distributions
• IRS: Seniors can reduce their tax burden by donating through their IRA
• IRS Publication 505 (2026)
• CRS: The 2/37ths Limitation on Itemized Deductions
• IRS: Enhanced deduction for seniors
• CMS: 2026 Medicare Parts A & B premiums
• SSA POMS: MAGI for IRMAA
• IRS Instructions for Forms 1099-R and 5498 (2026)
• IRS Form 1040 instructions (2025)

Disclaimer: This article is educational information only and is not financial, tax or legal advice. Talk to a qualified tax professional about your own situation.