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Smart Giving Through Qualified Charitable Distributions
Discover how to give to the charity you love, satisfy your Required Minimum Distribution, and reduce your tax bill — all at the same time. Presented by Janet Walker of GenWealth Financial Advisors.
Why This Matters
Most Retirees Are Leaving Money on the Table
If you're 70½ or older with an IRA and you're giving to charity or taking Required Minimum Distributions, there's a strategy most people completely overlook. A Qualified Charitable Distribution (QCD) lets you direct IRA funds straight to charity — excluded entirely from your taxable income — without needing to itemize your deductions.
In This Video
Everything You Need to Know About QCDs
In just 10 minutes, Janet covers all the key topics — start to finish.
01
What Is a QCD?
A direct transfer from your IRA to a qualified charity that's completely excluded from your taxable income — with no itemizing required.
02
Who Qualifies
Must be 70½ or older. Learn which IRA account types are eligible — and which common accounts are not.
03
2026 Rules & Limits
The 2026 annual QCD limit is $111,000 per person — up to $222,000 for married couples who each have an IRA.
04
The Tax Advantages
Reduce your AGI, potentially lower your tax bracket, reduce Social Security taxation, and even avoid costly Medicare IRMAA surcharges.
05
RMD Satisfaction
QCDs can count toward your Required Minimum Distribution — meaning your charitable gift handles your RMD obligation without adding taxable income.
06
Step-by-Step Process
From contacting your custodian to proper 1099-R reporting — a complete, practical walkthrough so you know exactly what to do.
Tax Advantages
Four Powerful Tax Benefits of a QCD
These advantages stack — and many retirees don't realize how much they're leaving on the table.
Reduces Taxable Income Without Itemizing
Most retirees no longer itemize, so regular charitable gifts often produce zero tax benefit. With a QCD, the exclusion happens at the AGI level — no itemizing required.
May Keep You in a Lower Tax Bracket
A lower AGI could keep your income below the threshold for a higher marginal tax rate — putting real money back in your pocket depending on your situation.
Could Reduce Taxation of Social Security
Between 50–85% of Social Security benefits can be taxable, depending on your income. Lowering your AGI with a QCD can reduce how much of your Social Security is taxed.
May Reduce Medicare IRMAA Premiums
Medicare Part B & D premiums are income-based. One GenWealth client's $30,000 QCD reduced their AGI enough to avoid IRMAA surcharges entirely — saving $1,400/year in premiums.
Eligibility
Do You Qualify for a QCD?
Three core rules determine eligibility. All three must be met for your distribution to qualify.
- 1Age Requirement You must be 70½ or older on the date of the gift. There are no exceptions — not 70, not 70 years and 4 months.
- 2Eligible Account Type Must come from a Traditional IRA, Rollover IRA, Inherited IRA, or inactive SEP/SIMPLE IRA. 401(k)s and 403(b)s are not eligible.
- 3Qualifying Charity The recipient must be an IRS-qualified 501(c)(3) public charity. Donor-advised funds, private foundations, and supporting organizations do NOT qualify.
Eligible vs. Ineligible Accounts
✓ Eligible for QCDs
Traditional IRA Rollover IRA Inherited IRA Inactive SEP IRA Inactive SIMPLE IRA✗ Not Eligible for QCDs
401(k) 403(b) 457 Plan Roth IRA Active SEP/SIMPLE IRA✗ Ineligible Recipient Types
Donor-Advised Funds Private Foundations Supporting Organizations💡 Tip: If your funds are in a 401(k), roll them into an IRA first to become eligible for QCDs.
2026 Numbers
Current QCD Limits & Deadlines
The IRS adjusts the annual QCD limit for inflation. For 2026, the limit is $111,000 per person. Married couples can potentially double this by each making a QCD from their own separate IRA accounts.
The December 31st year-end deadline gives you flexibility to plan your QCD at any point during the year — not just during tax season. And remember: QCD eligibility begins at 70½, while RMDs don't kick in until 73 — giving you a valuable planning window.
2026 Annual Limit — Per Person
$111,000
Indexed for inflation annually
2026 Limit — Married Couple
$222,000
Each spouse uses their own IRA & limit
Year-End Deadline
Dec 31, 2026
Must be completed by December 31 to count for the tax year
Real-World Example
See the Numbers in Action
Here's a concrete example from the video. You're 74 years old, your Required Minimum Distribution for the year is $80,000, and you want to make a meaningful gift to your church.
Instead of taking the full $80,000 as income and writing a separate check to your church, you direct $30,000 of your RMD directly to the church as a Qualified Charitable Distribution.
The result: the $30,000 never touches your taxable income, your RMD obligation is partially satisfied, and you've made a meaningful charitable gift — all in one move.
Numbers are illustrative. Your actual figures will vary — the strategy holds regardless of the amounts involved.
📊 Example Scenario
Age 74 years old
RMD for the year $80,000
QCD directed to church $30,000
Amount counted toward RMD $30,000 ✓
Added to taxable income $0 ✓
Remaining RMD to handle $50,000
Potential AGI reduction –$30,000
Meaningful gift made Yes ✓
Hypothetical example for illustrative purposes. Results will vary. Please consult your financial and tax advisors.
How to Set It Up
5 Steps to Complete Your QCD
Once you've confirmed you qualify, the process is straightforward — but the details matter.
1
Contact Your Financial Advisor or IRA Custodian
Request a QCD and provide the amount you'd like to direct to charity. Have the charity's legal name, address, and EIN handy.
2
Confirm Payable Directly to the Charity
The check or transfer must be made payable directly to the charity — never to you personally. If the funds pass through your hands, it no longer qualifies as a QCD.
3
Verify Receipt with Both Parties
Confirm with your IRA custodian that the transfer was sent, and follow up with the charity to verify it was received.
Heads up: Custodians often send checks without referencing the account holder's name. Let the charity know to expect the check so it doesn't get lost.
4
Keep Your Acknowledgment Letter
The charity will provide a written acknowledgment of your gift. Retain this for your tax records — you'll need it to substantiate the QCD.
5
Report It Correctly on Your Tax Return
QCDs appear on your 1099-R as a distribution, but the taxable amount should reflect $0. Make sure your tax preparer knows it was a QCD so it's handled correctly on Form 1040.
Janet Walker
Co-Founder & Financial Advisor, GenWealth Financial Advisors
Janet Walker is a Co-Founder & financial advisor at GenWealth Financial Advisors, specializing in retirement income planning, tax-efficient strategies, and helping clients navigate the complex decisions that come with life after 70. Janet is passionate about helping retirees make the most of their assets — while staying aligned with their values.
Next Steps
Ready to See If a QCD Is Right for You?
QCDs are one of the most powerful — and most overlooked — strategies for retirees who are charitably inclined. If you're 70½ or older with an IRA, it's worth having this conversation with your advisor. The GenWealth team is here to help.
Disclosure: This is a hypothetical situation based on real-life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Please consult your financial and tax advisors before implementing any strategy. GenWealth Financial Advisors does not provide tax or legal advice.
Smart Giving Through Qualified Charitable Distributions
Give to the charity you love, satisfy your RMD, and reduce your tax bill — all at the same time. Presented by Janet Walker of GenWealth Financial Advisors.
~10–12 Minutes
Ages 70½+
2026 Rules & Limits
Why This Matters
Most Retirees Are Leaving Money on the Table
If you're 70½ or older with an IRA and you're giving to charity or taking Required Minimum Distributions, there's a strategy most people completely overlook. A Qualified Charitable Distribution (QCD) lets you direct IRA funds straight to charity — excluded entirely from your taxable income — without needing to itemize.
In This Video
Everything You Need to Know About QCDs
In just 10 minutes, Janet covers all the key topics — start to finish.
What Is a QCD?
A direct IRA-to-charity transfer, completely excluded from your taxable income — no itemizing required.
Who Qualifies
Must be 70½ or older. Learn which IRA types are eligible — and which common accounts are not.
2026 Rules & Limits
$111,000 per person, up to $222,000 for married couples. Deadline: December 31.
The Tax Advantages
Lower your AGI, reduce Social Security taxation, and potentially avoid Medicare IRMAA surcharges.
RMD Satisfaction
QCDs count toward your RMD — your charitable gift handles your obligation without adding taxable income.
Step-by-Step Process
A complete walkthrough from contacting your custodian to proper 1099-R reporting.
Tax Advantages
Four Powerful Tax Benefits of a QCD
These advantages stack — and many retirees don't realize how much they're leaving on the table.
Reduces Taxable Income Without Itemizing
Most retirees no longer itemize, so regular charitable gifts often produce zero tax benefit. With a QCD, the exclusion happens at the AGI level.
May Keep You in a Lower Tax Bracket
A lower AGI could keep your income below the threshold for a higher marginal tax rate — putting real money back in your pocket.
Could Reduce Taxation of Social Security
Between 50–85% of Social Security benefits can be taxable depending on income. Lowering your AGI with a QCD can reduce how much is taxed.
May Reduce Medicare IRMAA Premiums
One GenWealth client's $30,000 QCD reduced their AGI enough to avoid IRMAA surcharges entirely — saving $1,400/year in Medicare premiums.
Eligibility
Do You Qualify for a QCD?
Three core rules determine eligibility. All three must be met for your distribution to qualify.
- 1Age Requirement You must be 70½ or older on the date of the gift. No exceptions.
- 2Eligible Account Type Must come from a Traditional, Rollover, or Inherited IRA, or inactive SEP/SIMPLE IRA. 401(k)s are not eligible.
- 3Qualifying Charity Must be an IRS-qualified 501(c)(3) public charity. Donor-advised funds and private foundations do not qualify.
Eligible vs. Ineligible Accounts
✓ Eligible for QCDs
Traditional IRA Rollover IRA Inherited IRA Inactive SEP IRA Inactive SIMPLE IRA✗ Not Eligible
401(k) 403(b) Roth IRA Active SEP/SIMPLE IRA✗ Ineligible Recipients
Donor-Advised Funds Private Foundations💡 If your funds are in a 401(k), roll them into an IRA first to become eligible.
2026 Numbers Discuss Your Situation
Current QCD Limits & Deadlines
The 2026 annual limit is $111,000 per person — indexed for inflation. Married couples can potentially double this using each spouse's own IRA. The year-end deadline gives you flexibility to plan at any point during the year.
2026 Limit — Per Person
$111,000
Indexed for inflation annually
2026 Limit — Married Couple
$222,000
Each spouse uses their own IRA & limit
Year-End Deadline
Dec 31, 2026
Must complete by December 31 to count for the tax year
Real-World Example
See the Numbers in Action
You're 74, your RMD for the year is $80,000, and you want to give to your church. Instead of taking the full $80,000 as income and writing a separate check, you direct $30,000 directly to the church as a QCD.
Numbers are illustrative. Your actual figures will vary — the strategy holds regardless of the amounts.
📊 Example Scenario
Age 74 years old
RMD for the year $80,000
QCD to church $30,000
Counted toward RMD $30,000 ✓
Added to taxable income $0 ✓
Remaining RMD $50,000
AGI reduction –$30,000
Hypothetical example for illustrative purposes. Results will vary. Please consult your financial and tax advisors.
How to Set It Up
5 Steps to Complete Your QCD
Once you've confirmed you qualify, the process is straightforward — but the details matter.
1
Contact Your Advisor or IRA Custodian
Request a QCD, provide the amount, and have the charity's legal name, address, and EIN ready.
2
Confirm It's Payable Directly to the Charity
The check or transfer must be payable to the charity — never to you personally.
3
Verify Receipt with Both Parties
Confirm the custodian sent it and the charity received it.
Heads up: Custodians often send checks without the account holder's name. Let the charity know to expect it.
4
Keep Your Acknowledgment Letter
The charity will provide written acknowledgment — retain this for your tax records.
5
Report It Correctly on Your Tax Return
Tell your tax preparer it was a QCD so it's handled correctly on Form 1040. The taxable amount on your 1099-R should reflect $0.
Janet Walker
Co-Founder & Financial Advisor, GenWealth Financial Advisors
Janet Walker is a Co-Founder & financial advisor at GenWealth Financial Advisors, specializing in retirement income planning, tax-efficient strategies, and helping clients navigate the complex decisions that come with life after 70. Janet is passionate about helping retirees make the most of their assets — while staying aligned with their values.
Next Steps
Ready to See If a QCD Is Right for You?
QCDs are one of the most powerful — and most overlooked — strategies for retirees who are charitably inclined. If you're 70½ or older with an IRA, it's worth a conversation.
Disclosure: This is a hypothetical situation based on real-life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Please consult your financial and tax advisors before implementing any strategy. GenWealth Financial Advisors does not provide tax or legal advice.