Giving from your IRA in 2026?
A Qualified Charitable Distribution (QCD) must be completed by December 31, 2026. QCDs often need several weeks to process it. Contact your custodian early to ask about their year-end cutoff.
If you’re 70½ or older and have an Individual Retirement Account (IRA), there’s a simple way to give more to the causes you care about: a Qualified Charitable Distribution, or QCD.
In most years, individuals over age 70½ must take a Required Minimum Distribution (RMD) from tax-advantaged retirement plans. The government set this rule so that income taxes are eventually paid on tax-deferred contributions in IRAs, 401(k)s and 403(b)s. Your RMD is calculated using a life-expectancy factor applied to your year-end retirement plan balance
To help ease the tax burden on RMDs and encourage philanthropy, Congress introduced QCDs in 2006.
QCDs allow IRA owners and beneficiaries who are at least 70½ to direct up to $111,000 (in 2026) in total to one or more eligible charities straight from an IRA. For married couples, you can each donate up to your individual annual limit ($222,000 total).
QCDs can count toward your RMD without adding to your taxable income.
Is a QCD Right for Me?
A QCD may be a good fit if you:
- Are 70½ or older and own a traditional IRA. You must be at least 70½ on the day of the gift.
- Take required withdrawals (RMDs). Starting at age 73, the IRS requires you to take a Required Minimum Distribution (RMD) from your retirement accounts each year. A QCD can count toward it.
- Don’t need the extra income. A QCD satisfies all or part of your RMD without adding to your taxable income.
- Are converting part of a traditional IRA to a Roth IRA this year. You still need to take required withdrawals first. Using a QCD for the RMD keeps that income off your tax return and may make the Roth conversion planning cleaner.
- Want to manage income-based costs. Because a QCD is excluded from income, it can help some donors stay below income levels that raise Medicare premiums. Talk with your advisor about your situation.
- Take the standard deduction. Many households won’t itemize in 2026 because the standard deduction rose again. A QCD gives you a tax benefit without itemizing.
- You missed part of an RMD in a prior year. The excise tax on missed RMDs is 25% of the amount you were required to withdraw, reduced to 10% if corrected within the IRS “correction window.” QCDs do not retroactively erase a past-due RMD, but they can be part of a forward-looking plan to prevent future RMDs from inflating income.
Talk with your tax advisor about what makes sense for you.
How a QCD Can Add Up
Meet Alex, a single tax filer who is 73 and has an expected ordinary income of $100,000 in 2026. His traditional IRA is worth $1 million, so his required minimum distribution (RMD) is $37,736 this year ($1,000,000 divided by the IRS factor of 26.5).
Here is how a $37,736 gift compares when Alex donates cash and when he gives through a QCD.
| Alex’s 2026 example | Cash gift | QCD |
|---|---|---|
| IRA distribution (RMD) | $37,736 | $37,736 |
| Gift to charity | $37,736 | $37,736 |
| Other ordinary income | $100,000 | $100,000 |
| Adjusted gross income (AGI) | $137,736 | $100,000 |
| Deduction | $37,047 (itemized) | $16,100 (standard) |
| Taxable income | $100,689 | $83,900 |
| Estimated federal tax | $16,864 | $13,170 |
| Estimated tax savings with a QCD | $3,694 |
This is an example only. It uses 2026 federal rules for a single filer and excludes California tax and other deductions. Alex’s itemized deduction is his gift minus the new 0.5% threshold. A QCD isn’t subject to that threshold, and its lower AGI can also help with Medicare premiums and how much of your Social Security is taxed.
Your results will depend on your income and filing status. Talk with your tax advisor about what makes sense for you.
Where Can I Give a QCD?
Although QCDs cannot be gifted to donor-advised funds (DAFs), you can direct a QCD to San Diego Foundation programs and funds that support the causes you care about, including but not limited to:
- Close to Home Fund: Brings donors together to support family well-being, education, environment and housing across the San Diego region.
- El Camino Fund: Supporting initiatives that celebrate Latino heritage and community success.
- Lotus Fund: Supporting initiatives that celebrate AANHPI heritage and community success.
These funds and more are guided by community expertise and managed by SDF program leaders who work closely with local partners, so gifts are directed to where they are needed most.
To learn more or to make a QCD, contact our Donor Services team at (619) 814-1332 or [email protected].
How to Make a QCD
A QCD takes a few steps, and our Donor Services team can help with each one.
- Check that you qualify. Confirm that you’re at least 70½ and that the gift will come from a traditional IRA.
- Choose where to give. Pick the fund or initiative you want to support. Our Donor Services team can help you decide and confirm QCD eligibility.
- Contact your IRA custodian. Ask for their QCD form or process. Many custodians can send a check made out to SDF, or transfer the gift directly.
- Send us the details. Let our Donor Services know the amount and where you’d like it to go, so we can match your gift when it arrives.
- Keep your acknowledgment. SDF will send a written acknowledgment of your gift. Share it with your tax advisor when you file.
Plan ahead: Custodians can take several weeks to process a QCD, and your gift must be completed by December 31 to be eligible for 2026 tax deductions. We recommend starting as soon as you can.
FAQs about Qualified Charitable Distributions
Can I make a QCD to my donor-advised fund (DAF)?
No. A QCD can’t go to a DAF. You can give to SDF funds like the El Camino Fund, Lotus Fund or Close to Home Fund, and keep using your DAF for other gifts.
What age do I need to be to make a QCD?
You must be at least 70½ on the day of the gift.
How much can I give through a QCD this year?
Up to $111,000 per person in 2026. The limit adjusts each year. Married couples can each give up to their own limit.
Does a QCD count toward my required minimum distribution (RMD)?
Yes. A QCD can satisfy all or part of your RMD for the year.
What is the QCD deadline for tax deduction eligibility?
Your QCD must be completed by December 31 each year to count for that tax year. Completing a QCD gift can take several weeks, so we recommend starting early.
Can I give a QCD from my 401(k) or 403(b)?
Employer-sponsored retirement plans, such as 401(k)s, 403(b)s, and similar workplace plans, are not eligible for QCDs.
Giving From Your IRA, Simplified
A QCD can feel complicated, but you don’t have to figure it out alone. Our team works with donors and their advisors every day to find the right way to give, whether it’s cash, stock, an IRA or other assets.
If you’re considering a QCD, we can connect with you and your advisor to help you achieve your giving goals.
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This information is general and not tax or legal advice. Please consult your tax advisor.
