Many retirees donate to charity the same way they always have:
They write a check.

But starting in 2026, that habit could be costing generous retirees thousands of dollars a year in unnecessary taxes.

Thanks to higher limits on Qualified Charitable Distributions (QCDs), retirees now have a far more tax-efficient way to give — one that reduces income, satisfies Required Minimum Distributions (RMDs), and can even help keep Medicare premiums lower.

What Changed in 2026

Beginning in 2026, retirees age 70½ and older can give up to:

• $111,000 per person, or
• $222,000 per couple

directly from their IRAs to qualified charities each year.

These gifts:

• Count toward RMDs
• Never show up as taxable income
• Don’t require itemizing deductions

That last point is critical — especially under today’s tax rules.

Why Writing a Check Is Often the Worst Way to Give

Here’s what happens when retirees donate the “traditional” way:

1. They take their full RMD
2. The withdrawal is fully taxable
3. It increases adjusted gross income (AGI)
4. They write a check to charity afterward

Even if the donation is deductible, many retirees don’t itemize anymore. And even if they do, the higher AGI can still trigger:

• Higher Medicare premiums
• More taxable Social Security
• Higher marginal tax brackets

In other words, the donation helps the charity — but not the retiree’s tax situation.

How QCDs Flip the Script

A Qualified Charitable Distribution works differently.

Instead of taking the RMD and then donating, the money goes directly from the IRA to the charity. The result?

• The distribution never counts as income
• AGI stays lower
• RMD requirements are satisfied
• Taxes are reduced before they ever start

This is one of the rare strategies that lowers taxes without deductions, loopholes, or complexity.

Why Lower AGI Matters More Than You Think

Many retirees focus only on income tax brackets.

But AGI affects far more than just your tax rate.

Lower AGI can help:

• Avoid IRMAA Medicare surcharges
• Reduce how much Social Security is taxed
• Prevent bracket creep over time
• Keep more flexibility for Roth conversions

By giving from your IRA instead of your checkbook, you’re not just being generous — you’re strategically controlling income.

When QCDs Are Especially Powerful

QCDs tend to be most valuable for retirees who:

• Are charitably inclined
• Take standard deductions
• Are subject to RMDs
• Are near Medicare IRMAA thresholds
• Want to reduce lifetime taxes, not just this year’s bill

For these retirees, QCDs often save more in taxes than traditional deductible donations — even when the donation amount is the same.

A Simple Example

Imagine a retiree who must take a $30,000 RMD and plans to donate $10,000 to charity.

• Traditional method:
  $30,000 added to income, then a $10,000 check written afterward.
• QCD method:
  $10,000 sent directly from the IRA to charity, only $20,000 counted as income.

That $10,000 difference can ripple through taxes, Medicare premiums, and Social Security calculations — year after year.

Giving Smarter Without Giving Less

QCDs don’t change who you support or how much you give.

They change where the money comes from — and that makes all the difference.

Under the higher 2026 limits, retirees who already give generously now have more room to do it in a way that aligns with smart tax planning.

It’s one of the cleanest examples of doing good and doing better financially at the same time.