How it works
You must be 70½ or older on the date of the distribution -- a different, usually earlier, line than the age your RMDs actually start (73 or 75). The 2026 annual exclusion is $111,000 per person (IRS Notice 2025-67), from your own traditional IRA (an inactive SEP or SIMPLE IRA counts; not an active one, and not a 401(k) or 403(b)), sent directly to an eligible charity. If you're already RMD age, the QCD counts toward that year's RMD dollar for dollar, up to the RMD amount; any amount beyond that is still excluded from income, just not required. In the example, a 74-year-old with a $11,764.71 RMD who gives $15,000 as a QCD satisfies 100% of the RMD and keeps the full $15,000 out of AGI -- not merely deducted, never counted as income at all. More in the QCD guide, including what happens when only one spouse in a couple is old enough to qualify.