More Information About QCD
Many people want to give to a cause they care about but also want to be wise about taxes. There are several ways to give that may help reduce taxes while supporting St. Jude House. One of the most helpful tools for older adults is the Qualified Charitable Distribution, or QCD.
What Is a Qualified Charitable Distribution (QCD)?
A QCD is a gift that you make directly from your IRA to a charity. If you are 70½ or older, you may be able to give this way.
A QCD does not count as taxable income, which can lower your overall tax bill. It can also count toward your yearly Required Minimum Distribution (RMD).
In 2026, you can give up to $111,000 through a QCD.
Why QCDs Are Tax-Smart
QCDs can help you:
- Lower your taxable income because the gift is not added to your income for the year
- Meet your RMD without raising your taxes
- Avoid higher Medicare costs, since higher income can lead to higher premiums. QCDs keep that income off your tax return
Give even if you do not itemize deductions, because QCDs reduce income directly.
Important Rules to Know
- The money must go straight from your IRA to the charity. You cannot take the money out first
- QCDs can only come from IRAs, not 401(k)s or donor-advised funds
- You must be at least 70½ to make a QCD
- You can give up to $111,000 per person in 2026, and spouses with their own IRAs can each make a QCD
Why QCDs Matter Even More in 2026
New tax rules beginning in 2026 make it harder for some people to deduct charitable gifts through normal itemized deductions. These rules limit how much of a donation can be deducted based on income. QCDs skip these limits because they reduce income directly—making them more valuable for many donors.
Other Ways to Give Tax-Smart
If a QCD is not right for you, there are still other ways to give wisely:
Giving Appreciated Assets (Like Stocks)
If you donate stocks that have gone up in value, you may avoid paying capital gains taxes while still supporting a cause you care about.
Donor-Advised Funds
A donor-advised fund lets you make a gift now, receive a tax benefit (for those who itemize), and recommend grants to charities over time.
Note: you cannot use a QCD to give to a donor-advised fund.
Estate Gifts
Charitable gifts in your will may reduce estate taxes and help your values live on.
Talk With Your Advisor
Tax laws change often, and everyone’s situation is different. Before making a tax-smart gift, it is a good idea to:
- Talk with your financial advisor or tax professional
- Tell your IRA custodian if you want to make a QCD
- Let St. Jude House know if you plan to make a tax-advantaged gift
