IRA owners age 70½ or older. The maximum is about $108,000 per person in 2025 (indexed), paid directly from the IRA to a qualified charity.

QCD Calculator — Qualified Charitable Distribution Tax Savings

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QCD Calculator

Charitable IRA giving • Tax saved

Your RMD this year

QCD amount (gift from IRA) ⓘ

Your federal tax bracket

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Enter your RMD and gift to see the savings

How the QCD Calculator Works

Enter your RMD and the amount you want to give directly from your IRA.
Pick your tax bracket.
See the tax you save and how much your taxable income and MAGI drop.

How a QCD Saves You Taxes

A Qualified Charitable Distribution lets people 70½+ donate up to about $108,000 (2025, indexed) directly from an IRA to charity. The gift counts toward your Required Minimum Distribution but is excluded from taxable income — unlike a normal RMD plus a separate donation. Because it lowers your AGI and MAGI, a QCD can also reduce Medicare IRMAA surcharges and the taxation of Social Security, and it benefits you even if you take the standard deduction. Estimate only; not tax advice.

Formula & Logic

A qualified charitable distribution sends money directly from an IRA to a charity, and it is one of the most tax-efficient gifts available to anyone over 70½. The mechanism matters: because the money never enters your income, it is excluded rather than deducted. That is better than a deduction for three reasons — it works even if you take the standard deduction, it lowers adjusted gross income rather than taxable income, and a lower AGI can reduce Medicare IRMAA surcharges and the taxable share of Social Security. It also counts toward your required minimum distribution.

QCD limit: $105,000 per person per year (indexed)Taxable IRA income = RMD − QCD amountAGI reduction = QCD amount (an exclusion, not a deduction)Must transfer DIRECTLY from custodian to qualifying charity

where:

age: 70½ or older — note this is younger than the RMD age of 73
exclusion: never appears in income, unlike a charitable deduction
RMD credit: a QCD satisfies the RMD up to the amount given

Assumptions: Must go directly from custodian to charity — taking the money first and donating it does not qualify. Donor-advised funds and private foundations are excluded. Applies to IRAs, not to 401(k)s.

SourceIRS Publication 590-B

Step-by-Step Example: Giving $20,000 From a $32,075 RMD

Compare a QCD with writing a cheque after taking the full distribution.

RMD$32,075
Charitable intent$20,000
Marginal rate22%
FilingStandard deduction

Without a QCD: the full $32,075 enters income, and the $20,000 gift produces no deduction at all because the standard deduction is being taken.
Tax on the full RMD: $32,075 × 22% = $7,057.
With a QCD: $20,000 goes directly to the charity and never enters income.
Taxable IRA income falls to $32,075 − $20,000 = $12,075.
Tax: $12,075 × 22% = $2,657.
Tax saved: $7,057 − $2,657 = $4,400 on an identical gift.

Result$4,400 of tax saved — the same $20,000 reaches the charity

The saving exists purely because of how the money moves. Since roughly 90% of taxpayers now take the standard deduction, charitable giving produces no tax benefit for most people — the QCD is the main exception, and it also lowers AGI, which can reduce IRMAA surcharges two years later.

QCD FAQ

Who can make a QCD? ▾

IRA owners age 70½ or older. The maximum is about $108,000 per person in 2025 (indexed for inflation), paid directly from the IRA to a qualified charity.

Does a QCD count toward my RMD? ▾

Yes. A QCD satisfies your RMD dollar-for-dollar, up to the amount given, while keeping that money out of your taxable income.

Why is a QCD better than donating normally? ▾

A normal RMD is taxable even if you donate it. A QCD excludes the gift from income entirely, lowering AGI/MAGI — which can also reduce IRMAA and Social Security taxation — and works without itemizing.