Qualified Charitable Distribution Calculator

Calculate QCD tax savings from donating directly from your IRA at age 70.5+. Satisfies RMD.

By Konstantin Iakovlev · Updated April 2026 · Source: IRS — Forms, Instructions & Publications

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QCD Amount

$50,000.00

RMD Satisfied

$20,000.00

Tax Savings

$12,000.00

QCD Breakdown

QCD to Charity$50,000.00
RMD Satisfied by QCD$20,000.00
Remaining RMD (taxable)$0.00

Tax Benefits

Taxable Income Reduction$50,000.00
Tax Savings (24% bracket)$12,000.00
MAGI Reduction$50,000.00
BenefitMay lower Medicare premiums (IRMAA)
BenefitMay reduce Social Security taxation

Use the Qualified Charitable Distribution Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Sending money straight from a traditional IRA to a qualified charity, a move available once you reach age 70.5, can shrink your tax bill, and this tool estimates by how much. The strategy carries extra weight for those 73 and older, because a Qualified Charitable Distribution (QCD) can count toward the Required Minimum Distribution (RMD) for 2026, keeping that income off your return and potentially holding down both taxable income and Medicare premiums.

The estimate works by contrasting your marginal tax rate before the gift with your tax picture once the QCD lowers your Adjusted Gross Income (AGI). Because the distribution is assumed to offset your RMD, that slice of money never gets taxed as ordinary income, and the calculation also accounts for possible relief from the 3.8% Net Investment Income Tax (NIIT) and from Medicare Part B and Part D surcharges.

For the gift to qualify, the funds have to travel directly from your IRA custodian to the charity; pulling the money out to yourself first and then donating it breaks the benefit. The recipient must also be a 501(c)(3) public charity, since donor-advised funds and private foundations are not eligible destinations for a QCD.

Example: Maria's 2026 QCD Strategy

  1. 1 Maria, 75, has an RMD of $25,000 for 2026. Her taxable income without a QCD is $120,000, placing her in the 24% marginal tax bracket. She plans a $10,000 QCD.
  2. 2 Inputting these details: RMD = $25,000, Planned QCD = $10,000, Taxable Income = $120,000, Marginal Tax Rate = 24%. The calculator first determines the tax saved on the $10,000 QCD: $10,000 * 0.24 = $2,400.
  3. 3 Next, the calculator assesses if the QCD lowers Maria's AGI enough to impact other income-based thresholds. If her AGI drops below a Medicare Income-Related Monthly Adjustment Amount (IRMAA) threshold, additional savings would be calculated, though not in this specific scenario.
  4. 4 Maria's total estimated tax savings from her $10,000 QCD in 2026 is $2,400. This directly reduces her taxable income and satisfies $10,000 of her RMD, showcasing the immediate tax efficiency of this charitable giving method.

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

What is a Qualified Charitable Distribution?
A QCD is a direct transfer from your IRA to a qualified charity if you are 70.5 or older. Up to $108,000 per person in 2026 can be excluded from taxable income. QCDs count toward your Required Minimum Distribution (RMD) but are not included in your AGI.
Why is a QCD better than donating and deducting?
A QCD reduces your AGI, which can lower Medicare premiums (IRMAA), reduce Social Security taxation, and lower other income-based surcharges. A standard charitable deduction only helps if you itemize and does not reduce AGI. For most retirees, the QCD provides significantly more tax benefit.
Can I make a QCD from my 401(k)?
No. QCDs can only be made from IRAs (Traditional, inherited, and inactive SEP/SIMPLE IRAs). 401(k) plans do not qualify. If you want to make QCDs from your employer plan funds, roll them into a Traditional IRA first, then make the QCD.

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