Qualified charitable distribution (QCD)

What’s a qualified charitable distribution (QCD)?

A QCD is a direct transfer of funds from an IRA to a qualified charitable organization, and the amount transferred is generally excluded from the account owner’s income. The distribution must be made directly from the IRA custodian to the eligible charity.

Who is eligible for a QCD?

You must be at least age 70½ when you make the distribution. You can make QCDs even before RMDs kick in at age 73. Eligible accounts generally include:

• Traditional IRAs.
• Inherited IRAs, provided the beneficiary is age 70½ or older.
• Inactive SEP-IRAs.
• Inactive SIMPLE IRAs.
• Roth IRAs technically work, but they’re rarely ideal. Roth IRAs are already tax-free, and Roth owners don’t have lifetime RMDs.

Employer-sponsored retirement plans, such as 401(k), 403(b), and similar workplace plans, are not eligible for QCDs.

Check before you donate. Before initiating a QCD, take a moment to confirm that both your account and your intended charitable organization qualify under current IRS rules. You should also review:

• Whether your IRA type is eligible.
• Whether the charity is a qualified organization (note that distributions to donor-advised funds, private foundations, and certain other charitable vehicles are typically ineligible).
• Current-year IRS contribution limits and requirements.
• How a QCD may affect your individual tax situation.

Why consider a QCD?

• You can satisfy some or all of your RMD requirement.
• You may be able to avoid taxes on otherwise taxable distributions if you’re drawing from a traditional IRA.
• A QCD isn’t subject to ordinary federal income taxes—the amount is simply excluded from your income.
• Your annual RMD may be donated to a qualified charity.

How to make a QCD from an IRA

1. Confirm that the receiving charity is qualified under Internal Revenue Code § 170(b)(1)(A). You can make a maximum of $111,000 (in 2026) per year in qualified charitable distributions.
2. Start your distribution by following the instructions listed below if you’re a Vanguard client.
3. Choose an eligible account (typically a traditional IRA) and select the investment and dollar amount that you would like distributed.
4. Select Send me a check payable to a charity from the Where’s the money going? dropdown.
5. Read the QCD considerations.
6. Enter the name of the charity.
7. Proceed through to the confirmation screen.

How QCDs and required minimum distributions work together

QCDs let you use some or all of your RMD to donate to a qualified charity and lower your income in the process.

• QCDs can satisfy all or part of your RMD if you’re age 73 or older.
• Up to a maximum of $111,000 (in 2026) can be donated to a qualified charity as a QCD.
• QCDs made after age 70½ but before RMDs begin don’t count toward RMDs.
• If the QCD is less than the RMD, you must withdraw the remaining RMD amount.
• If the QCD exceeds the RMD, the excess doesn’t carry forward to future years’ RMD requirements.
• Your QCD only counts toward satisfying your RMD once you reach RMD age.
• If you have the Vanguard RMD Service, be sure to factor in these donations to avoid distributing more than your annual RMD.

For more information on RMDs, check out the RMD education page.

QCD tax considerations

Unlike regular donations, a QCD is excluded from income and not claimed as an itemized deduction.

Since QCDs never touch your income, they lower your adjusted gross income (AGI), affecting other tax calculations and thresholds. That’s why many retirees prefer QCDs over withdrawing IRA funds to donate.

QCDs must still be reported on your tax return, even though they’re excluded from income.

State tax rules may differ from federal rules. Some states mirror federal treatment; others have unique IRA distribution and charitable requirements.

Smart QCD strategies maximize impact. Consult a tax advisor before making a QCD.

Common QCD mistakes to avoid

A qualified charitable distribution can be a powerful giving and tax-planning tool, but even small missteps can cause a distribution to lose its favorable tax treatment. Before making a QCD, watch out for:

• Not meeting the age requirement. You must be age 70½ or older on the date the distribution is made, not simply turning 70½ later in the year.
• Using an ineligible account. QCDs generally must come from an eligible IRA. Employer-sponsored retirement plans, such as 401(k) and 403(b) plans, aren’t eligible, and active SEP-IRAs or SIMPLE IRAs may not qualify.
• Making the check payable to yourself instead of the charity. To qualify, the funds must be transferred directly from the IRA custodian to the charitable organization. If the distribution is paid to you first, it may be treated as a taxable IRA withdrawal.
• Selecting an ineligible charitable recipient. Not all organizations qualify to receive QCDs. Certain charitable vehicles, including donor-advised funds and many private foundations, are generally ineligible recipients.
• Claiming a charitable deduction for the same gift. Because a QCD is generally excluded from income, you typically can’t also claim the same amount as an itemized charitable deduction.
• Failing to retain required documentation. Be sure to keep records and acknowledgments from the charity to support the tax treatment of the QCD.
• Reporting the distribution incorrectly on your tax return. Even though a QCD is generally excluded from income, you must properly report it on your federal tax return. Incorrect reporting can lead to confusion, unnecessary taxes, or IRS issues.

Rules vary by circumstance. Consult a tax professional before making a QCD.

QCD frequently asked questions