If you are over 70½ and have an IRA, you have a powerful, tax-efficient way to support charities you care about: the Qualified Charitable Distribution (QCD), aka the IRA charitable rollover. This tax season, see if you have the opportunity to make charitable gifts directly from your IRA without paying income tax on the distribution.
With a QCD, anyone over 70½ can send money from their IRA directly to a qualified charity. Because the gift goes directly from your IRA to the charity, it is not income to you. If you are over 73, a QCD can also count toward your Required Minimum Distribution. As an added option, you can also choose a one-time QCD of up to $55,000 in 2026 to fund a Charitable Gift Annuity, which provides lifetime payments to you and your spouse.
Best of all, QCDs are easy. Just ask your IRA custodian to send a QCD directly to the charities you choose. They will take care of the transfer for you.
A QCD can be especially helpful if your IRA makes up a large part of your assets, or if you do not need all of your required minimum distribution for living expenses. Since the distribution is not taxable income, you get tax benefits even if you do not itemize.
There are some restrictions. You must be at least 70½, the maximum amount is $111,000 in 2026, and QCDs must go directly from your IRA to your charities. Donor-advised funds, supporting organizations, and private foundations do not qualify. Also, 401(k), 403(b), and 457 plans are not eligible.
If you think an IRA charitable rollover may be a good fit for you and the causes you care about, talk to your IRA custodian and favorite charities about how you can make a lasting impact.
Harry Need, CFRE, is a philanthropic advisor at the University of Alaska Foundation. Nothing in this article should be taken as tax advice. For your specific circumstances, please consult with your professional advisors.
