New 2026 tax rules changed how charitable giving works. For many retirees age 70½ and older, giving directly from an IRA may now be one of the most efficient ways to support the church and causes they love.
Your Giving Doesn’t Retire When You Do
For many of us, giving isn’t a line item. It’s a calling.
We tithe. We support our churches, our alma maters, our communities, and the causes that shaped us. And for many families, that commitment continues long after the paychecks stop.
But here’s what many faithful givers don’t realize:
How you give can matter almost as much as how much you give.
Starting in 2026, the charitable tax rules changed. And for retirees age 70½ and older, there’s a giving strategy that may let your generosity go further, without changing a single dollar of what you give.
The Problem: Many Retirees Give Generously and Get Little Tax Benefit
If you take the standard deduction
Many retirees take the standard deduction instead of itemizing. In the past, that meant their charitable gifts produced no federal tax deduction at all.
Beginning in 2026, there’s some relief. Taxpayers who don’t itemize can now deduct up to $1,000 in cash gifts to qualifying charities, or $2,000 for married couples filing jointly.
That helps. But for someone who gives $5,000, $10,000, or more each year, most of that generosity still produces no tax benefit.
If you itemize
There’s a new hurdle here too. Starting in 2026, itemized charitable deductions are allowed only for the amount that exceeds 0.5% of your adjusted gross income (AGI).
For example, a household with $200,000 of AGI gets no deduction for its first $1,000 of giving.
The hidden cost of giving from your checkbook
Many retirees fund their giving this way:
- Withdraw money from their IRA, which counts as taxable income
- Deposit it in their bank account
- Write a check to their church or charity
That withdrawal can raise your taxable income, even though the money went straight back out the door to charity.
The Solution: The Qualified Charitable Distribution (QCD)
A Qualified Charitable Distribution, or QCD, lets you give directly from your IRA to a qualified charity.
When done correctly, a QCD:
- Is excluded from your taxable income
- Can count toward your required minimum distribution (RMD)
- Doesn’t require you to itemize
- Isn’t affected by the new 0.5% AGI floor on itemized charitable deductions
Who can use it
- You must be at least 70½ years old on the date of the gift.
- The money must come from an IRA. Distributions from employer plans like 401(k)s and TSPs, and from ongoing SEP or SIMPLE IRAs, aren’t eligible. Some retirees roll workplace plan money into an IRA first, which is a decision worth reviewing carefully.
How much you can give
For 2026, you can give up to $111,000 through QCDs. If you’re married and both spouses have IRAs, each spouse can give up to that limit from their own IRA.
Why 70½ matters
QCDs start at 70½. Required minimum distributions begin at 73 for most people today, and at 75 if you were born in 1960 or later. That means you can start giving this way years before your withdrawals are required.
The Mechanism: How a QCD Works in Real Life
A hypothetical example
This example is for education only and simplified for illustration.
Robert and Linda are both 74, married, and file jointly. They take the standard deduction. Each year, they give $10,000 to their church. Their IRA requires them to withdraw a $10,000 RMD this year.
Option 1: The traditional way
- They withdraw their $10,000 RMD. It’s added to their taxable income.
- They write a $10,000 check to their church.
- Because they don’t itemize, they can deduct $2,000 under the new 2026 rule.
- Net effect: $8,000 more taxable income than if they hadn’t withdrawn the money.
Option 2: The QCD way
- They ask their IRA custodian to send $10,000 directly to their church.
- Their RMD is satisfied.
- The $10,000 is excluded from their taxable income.
- Net effect: No added taxable income from the gift.
Same church. Same $10,000. Same generosity.
The difference is $8,000 less taxable income with the QCD. And because QCDs lower the income you report, they may also help with other income-based calculations, such as how much of your Social Security is taxable.
The rules you must follow
1. The money must go directly from your IRA to the charity.
If the IRA custodian sends the money to you first, it’s a regular taxable withdrawal. It doesn’t qualify as a QCD.
2. Not every organization qualifies.
Gifts to donor-advised funds and supporting organizations are not eligible for QCDs. Most churches and public charities do qualify, but confirm before you give.
3. Get the right receipt.
You need the same written acknowledgment from the charity that you’d need to claim a charitable deduction.
4. No double benefit.
You can’t also claim a charitable deduction for the amount excluded through a QCD.
5. Tell your tax preparer.
Your IRA’s year-end tax form (Form 1099-R) should generally carry a QCD code, but it still shows the full distribution. Your tax return is where the QCD is reported and the exclusion is claimed, so give your preparer your QCD records and the charity’s acknowledgment.
6. Watch out if you’re still contributing.
If you make deductible IRA contributions after age 70½, the amount you can exclude through QCDs may be reduced.
What to Do Before December 31
If you’re 70½ or older
- List the churches and charities you plan to support before year-end.
- Confirm each one qualifies to receive a QCD.
- Contact your IRA custodian early. Ask how they process QCDs and how long it takes. The distribution must come out of your IRA by December 31 to count for 2026, so don’t wait until the last week.
- Coordinate with your RMD. If you’ve reached your RMD age and haven’t taken this year’s RMD yet, a QCD can count toward it. If your RMDs haven’t started yet, you can still give through a QCD once you’re 70½.
- Keep your acknowledgment letters and share them with your tax preparer.
If you’re approaching 70½
- Think about how you plan to give in retirement. A QCD strategy works best when it’s planned, not discovered in December.
- Review where your retirement money is held. QCDs come from IRAs, so it’s worth knowing which accounts can be used.
- Talk with your spouse. If you both give, you may each be able to use your own IRA.
Give Generously. Give Wisely.
Generosity is one of the most meaningful parts of a life well lived. With the right strategy, it can also be one of the most efficient.
Your giving reflects your values. Your strategy should, too.
If you give regularly to your church or other charities, or you want to make sure your retirement plan supports the causes that matter most to you, let’s talk it through.
Book your complimentary 10-minute, one-to-one Wealth Clarity Call.
We’ll look at where you stand and help you see your next step with clarity.
This article is for educational purposes only and does not constitute individual tax, legal, or investment advice. Qualified charitable distribution rules include specific eligibility, timing, and reporting requirements, and individual results depend on your full tax situation. Please consult a qualified tax professional before making charitable distributions from a retirement account.
