Do you have charitable giving dreams or commitments you want to fulfill this year? Giving from your IRA can provide some tried-and-true strategies. As usual, the limits on qualified charitable distributions (QCDs) have increased in 2026, and recent changes under last year’s One Big Beautiful Bill make QCDs even more important for your charitable giving.
Let’s face it – IRAs can be confusing. So, let’s look at some options according to the age of the IRA owner. That should help you understand what might work best this year to maintain, or even increase, your giving to the charities you love.
Note: These opportunities may not be for everyone. Consult with your tax and financial advisors to understand the consequences of any giving solution to your unique situation. If giving from an IRA is not a good fit for you, various other options for giving are available this year.
First, we’ll define a few terms:
- Adjusted gross income (AGI) – A lot of numbers go into figuring AGI, but, big picture, think of it as your income before you take your standard or itemized deduction (including the charitable deduction) and qualified business income deduction. You can find yours on the first page of your IRS Form 1040. It’s in bold type toward the bottom.
- Regular distribution – This is simply a withdrawal from an IRA after the owner turns 59½. A regular distribution is generally made to you, and it’s reported as income on your tax return.
- Qualified charitable distribution (QCD) – A QCD is a distribution from an IRA which is paid directly to the qualified charity after the IRA owner turns 70½. In 2026, an IRA owner can make QCDs of up to $111,000 annually. This is an increase over the amount allowed in prior years. If your distribution counts as a QCD, the amount is not reported as taxable income or a charitable deduction on your tax return. Amounts that exceed $111,000 or don’t fit the QCD rules are typically treated as regular distributions but might also provide a charitable deduction. QCDs are also sometimes referred to as an IRA charitable rollover.
- Required minimum distribution (RMD) – An IRA owner who is 73 or older is required to distribute a certain portion of his or her IRA every year. This is known as your RMD. You can satisfy this requirement by making regular distributions, QCDs, or both, from your IRA.
Options by age:
Think of your IRA on an age-based timeline. If you distribute assets before the age of 59½, you’re making an early withdrawal and will likely pay both the income tax and a 10 percent penalty. As you move through the ages, regular distributions and QCDs become available to you, and eventually RMDs become a requirement. For those who have not yet turned 59½, there are likely better options to explore for your giving.
Age 59½ or older
At this age, you may make a regular distribution from an IRA without an early withdrawal penalty. You’ll still be required to take this as income, but you may offset some or all of the federal income tax by making a deductible gift to charity in the same year. This option is available every year.
In 2026, the charitable deduction for cash gifts to public charities and churches is reduced by 0.5 percent of your AGI, and it is limited to 60 percent of your AGI. So, a charitable gift won’t offset all of the federal income tax associated with a regular IRA distribution. If you’re in the highest income tax bracket, all of your itemized deductions, including your charitable deduction, may be reduced even further.*
You can carry the unused charitable deduction forward for five years under the normal rules for charitable deductions.
*The income may have other tax ramifications for you. For instance, you may still owe state income taxes if your state does not allow a charitable deduction. Consult with your tax and financial advisors.
Age 70½ or older
If you’re 70½ or older, you might consider making a QCD from your IRA directly to charity, rather than using a regular distribution (to yourself) followed by a charitable gift. A QCD can be a cash gift to the charity and can fund a charitable gift annuity (CGA). A QCD lets you give to charity without having to include the distribution in your AGI.
QCDs are limited to $111,000 per year. But you also can make a one-time election to use $55,000 of your QCD to fund a charitable gift annuity that will make regular payments to you and/or your spouse for your lifetimes. Like all CGAs, a CGA that is funded with a QCD must be set up so there is a remaining amount available for the charity.
Making a QCD directly from your retirement account means there are fewer ramifications for other taxes. A QCD is not reduced by the 0.5 percent (of AGI) that a charitable deduction is. It’s not an itemized deduction that will be reduced for givers in the highest tax bracket, and it’s not limited to 60 percent of your AGI. Among your giving options, a QCD is a very powerful one if you normally itemize your deductions.
Be aware that contributions to an IRA will reduce the amount of the QCD that you can make in the same year. For instance, if you contribute $25,000 to your IRA, you will only be allowed a QCD of $86,000. Any amount over the $86,000 will be treated as a regular distribution to you followed by a charitable gift that may be deductible.
Depending on your goals, a QCD may be an excellent choice for the first $111,000 of your charitable giving. You can even make both a QCD and a regular distribution followed by a deductible gift in the same year.
Age 73 or older
At age 73, every IRA owner must begin taking an RMD. These can be regular distributions, QCDs, or both. For example, if your RMD is $50,000, you can satisfy this by making a QCD of $30,000 directly to a charity and taking a regular distribution to yourself of $20,000.
If you then use the $20,000 from the regular distribution to make a deductible gift to your Giving Fund (donor-advised fund at NCF), you would use your IRA to fund the charities you care about in a tax-efficient way while fully satisfying your RMD.
Just remember, you don’t have to wait until you’re 73 to make distributions from your IRA. You can make regular distributions starting at 59½ (and use a charitable gift to offset some or all of the income), and you can make QCDs starting at 70½.
If you want help with giving from your IRA, reach out to your local NCF team.
