Retirees Over 70½ Can Send $111,000 a Year From an IRA to Charity Tax-Free.
The Average One Donates From Checking Instead
Quick Read – Retirees aged 70½ or older can transfer up to $111,000 annually from a traditional IRA directly to charity, excluding it entirely from taxable income. – Most retirees donate from checking accounts instead, gaining no tax benefit since only about 10% of taxpayers still itemize deductions. – Using a QCD to give $10,000 lowers adjusted gross income, which can reduce Medicare IRMAA surcharges and the taxable share of Social Security benefits. – The Qualified Charitable Distribution rule is a tax code provision that sits among the most generous giving provisions available to older Americans, yet is among the least used. Retirees who have reached age 70½ can transfer up to $111,000 per year directly from a traditional IRA to a qualified charity in 2026, with the entire amount excluded from taxable income. Married couples with separate IRAs can each contribute the same amount, for a combined ceiling of $222,000.
Most retirees who give do not use it. They write a check from a checking account, mail it, and take no tax benefit at all. The mechanics matter because they explain the gap.