IRA Qualified Charitable Distribution
What’s a qualified charitable distribution (QCD)?
The IRA Qualified Charitable Distribution (IRA QCD) allows individuals who are 70½ years or older to direct distributions from their IRA account to qualified domestic charities each tax year up to an annual limit. The SECURE Act 2.0 provided that the QCD limit be adjusted annually for inflation. For calendar year 2026, the QCD limit is increased to $111,000.
IRA QCD donors can avoid taking their Required Minimum Distribution (RMD), or lessen the income they must recognize from their RMD, by directing QCD gifts from their IRA plans to DLLT (and other charities if desired). Because QCD gifts go directly from the IRA to the donor’s designated charity(ies), the donor does not recognize the QCD amount as income to them from their tax-deferred IRA and they are not eligible to take a charitable tax deduction for the gift.
Note that the IRA QCD can also be used to fund a life income gift, that is, a charitable gift annuity or a charitable remainder trust.
Donating is a great option if you don’t need the money
You’re giving back
You get to choose whom to help from qualified charities like DLLT.
Counts toward IRS-required RMDs
If you’re age 73 or older and need to take RMDs, your QCD counts toward your annual IRS requirement.
Lowers your taxable income
With a QCD, the distribution does not get treated as income to you, reducing your risk of entering a higher tax bracket.
What are some rules for donating?
- Age: You must be 70½ or older to donate a QCD.
- Contribution limit: The most an individual can donate in a calendar year, across all charities, is $105,000. If you file taxes jointly, your spouse can donate up to $108,000 from their IRA as well.
- Eligible accounts: QCDs can be made from most IRAs, including:
- Rollover IRAs
- Inherited IRAs
- Traditional IRAs
- SEP IRAs (inactive plans only)
- SIMPLE IRAs (inactive plans only)
- Under certain circumstances, Roth IRAs
Have You Already Made a Provision for DLLT?
If you have made a provision for DLLT in your estate plans, please inform us of your intentions by filling out our secure online form to document your provision. Sharing information about your plans for DLLT ensures that your wishes are understood by the trust.
For more information, please call the Downeast Lakes Land Trust office at 207-796-2100.
Please understand that we cannot offer legal or financial advice, and none of the information provided above should be construed as such. We suggest consulting your own legal counsel or financial advisor before deciding whether to proceed with a gift.
The IRA QCD allows individuals to direct up to the QCD maximum each tax year to qualified domestic charities and avoid paying income taxes on the distributed funds that were tax-deferred when the funds were deposited and while invested. As a result, you cannot take a charitable deduction. However, you will not be required to include the QCD in your gross income, thereby potentially avoiding any effect the distribution might have on your tax bracket and/or any limitations imposed on itemized deductions.
