Yes, Qualified Charitable Distributions (QCDs) are reported on Form 1099-R. Your IRA custodian reports the entire distribution amount in Box 1, and a distribution code in Box 7 tells the IRS what type of payout it was. Under IRC Section 408(d)(8), a QCD lets IRA owners aged 70½ or older transfer up to $108,000 in 2025 (or $111,000 in 2026) directly from their IRA to a qualified charity — tax-free. The IRS does not treat this money as taxable income, but the 1099-R still shows the full amount as a gross distribution.
About 72% of taxpayers now use the standard deduction, which means they get zero tax benefit from charitable donations on Schedule A. A QCD sidesteps this problem entirely. It reduces your adjusted gross income (AGI) without needing to itemize.
Here’s what you’ll learn in this article:
- 📋 How every box on Form 1099-R relates to your QCD and what the new Code Y means
- 💰 Which IRA types qualify for QCDs — and which ones will trigger a tax bill if you try
- ⚠️ The most common QCD reporting mistakes that lead to overpaying taxes or IRS notices
- 🏛️ How states like New Jersey and Pennsylvania treat QCDs differently from federal law
- 🖥️ Step-by-step guidance for entering QCDs in TurboTax, H&R Block, and FreeTaxUSA
What Exactly Is a Qualified Charitable Distribution?
A QCD is a direct transfer of funds from your Individual Retirement Account to a qualifying charitable organization. The key word is direct — the money must go straight from your IRA custodian to the charity. If the check is made payable to you first, the IRS treats it as a regular taxable distribution, even if you turn around and donate it the same day.
Section 408(d)(8) of the Internal Revenue Code created this tax break. It allows “eligible IRA owners or beneficiaries” to exclude QCD amounts from gross income. The distribution still counts toward your Required Minimum Distribution (RMD) for the year under 26 CFR § 1.408-8, which is a major planning benefit.
You must be age 70½ or older on the date of the distribution. This is not the same as age 72 or 73 (the current RMD starting ages). The 70½ threshold has remained unchanged since QCDs were first introduced in 2006.
The Annual Dollar Limits
The per-person QCD limit is adjusted for inflation each year under the SECURE 2.0 Act. The original $100,000 cap has increased steadily.
| Tax Year | Annual QCD Limit |
|---|---|
| 2023 and prior | $100,000 |
| 2024 | $105,000 |
| 2025 | $108,000 |
| 2026 | $111,000 |
A married couple filing jointly can each make QCDs up to the annual limit from their own IRAs. That means a couple could exclude up to $222,000 in 2026. Each spouse must own the IRA and meet the age requirement independently.
The One-Time Split-Interest Election
SECURE 2.0 also created a one-time election to fund a split-interest entity with a QCD. This lets you send IRA dollars to a Charitable Remainder Unitrust (CRUT), Charitable Remainder Annuity Trust (CRAT), or Charitable Gift Annuity (CGA). The one-time cap is $54,000 in 2025 and $55,000 in 2026.
This amount counts against your overall annual QCD limit. If you use the full $55,000 one-time election in 2026, you can still make an additional $56,000 in regular QCDs that year ($111,000 minus $55,000). The CGA must provide a minimum 5% payout rate and make its first payment within one year.
If you already used this election in any prior year — even at the lower $50,000 or $53,000 limit — you cannot use it again. It is a once-in-a-lifetime election, regardless of whether the cap increases.
Which IRA Types Qualify for a QCD?
Not every retirement account is eligible. The type of IRA you hold determines whether you can make a QCD at all.
Traditional IRAs are the most common source for QCDs. Since contributions were tax-deductible going in, the distributions are normally taxable coming out. A QCD removes that tax hit entirely, making it the ideal account for charitable giving.
Rollover IRAs also qualify. If you rolled over a 401(k) or other employer plan into a Traditional IRA, that account is eligible for QCDs just like any other Traditional IRA.
Inherited IRAs qualify as well, as long as the beneficiary meets the 70½ age requirement. The QCD rules apply to inherited IRAs under Section 408(d)(3)(C), provided the account is maintained for the benefit of the designated beneficiary.
Roth IRAs are technically eligible, but there is almost no tax benefit. Roth distributions are already tax-free for qualified withdrawals. Making a QCD from a Roth IRA adds no additional savings since you wouldn’t owe tax on the distribution anyway.
SEP IRAs and SIMPLE IRAs have a major restriction. You cannot make QCDs from these accounts if they are still active — meaning the employer is still making contributions to them. Once the employer stops contributing (and you’re no longer employed there), you can roll the balance into a Traditional IRA and then make QCDs from that account.
| IRA Type | QCD Eligible? |
|---|---|
| Traditional IRA | Yes |
| Rollover IRA | Yes |
| Inherited IRA | Yes (beneficiary must be 70½+) |
| Roth IRA | Yes, but no tax benefit |
| Active SEP IRA | No |
| Active SIMPLE IRA | No |
| Inactive SEP/SIMPLE (rolled to Traditional) | Yes |
How QCDs Appear on Form 1099-R: Box by Box
Your IRA custodian files Form 1099-R with the IRS and sends you a copy after any distribution of $10 or more. Understanding each box on the form is critical because mistakes here lead to overpaying taxes.
Box 1: Gross Distribution
This box shows the total amount distributed from your IRA during the year. It includes everything — your QCD, any regular withdrawals, and your RMD. The IRS sees this number first.
If you took a $30,000 total distribution from your IRA and $15,000 of that was a QCD, Box 1 will show $30,000. The QCD portion is not separated out in this box.
Box 2a: Taxable Amount
Box 2a reports the taxable portion of your distribution. For most Traditional IRA distributions, this number matches Box 1. The IRS instructions for Form 1099-R state that the custodian may enter the full amount here, leaving it to you to claim the QCD exclusion on your tax return.
This is the box that confuses people the most. Even though your QCD is tax-free, Box 2a might still show the full distribution amount. Your custodian is not required to reduce this number for the QCD. The responsibility falls on you when you file Form 1040.
Box 2b: Taxable Amount Not Determined
If your custodian checks this box, it means they did not calculate the taxable amount for you. You must determine it yourself. This checkbox appears frequently on QCD-related 1099-R forms because custodians often leave the taxable amount determination to the taxpayer.
Box 3: Capital Gain
This box applies to lump-sum distributions from qualified plans where part of the payout qualifies for capital gains treatment. For a standard QCD from a Traditional IRA, Box 3 is typically blank.
Box 4: Federal Income Tax Withheld
If you requested tax withholding — or if your custodian withheld taxes automatically — that amount appears here. Ideally, a QCD should have $0 in Box 4 because the distribution is not taxable. If your custodian withheld taxes from a QCD, you’ve created an unnecessary complication. The withheld amount is not part of the QCD because it never reached the charity.
Box 5: Employee Contributions or Insurance Premiums
This box shows the portion of the distribution that represents after-tax contributions, Roth contributions, or insurance premiums recoverable tax-free. For most Traditional IRA QCDs, this box is $0 or blank.
Box 7: Distribution Code — The Most Important Box
Box 7 tells the IRS why you received a distribution. This is where QCD reporting has changed significantly.
Before 2025, QCDs were reported with Code 7 (normal distribution) or Code 4 (death distribution for inherited IRAs). There was no separate code to identify a QCD. The IRS relied on taxpayers to self-report the QCD exclusion on their Form 1040.
Starting in 2025, the IRS introduced Code Y specifically for QCDs. This new code appears in combination with another code in Box 7:
| Code Combination | Meaning |
|---|---|
| 7Y | Normal distribution that is a QCD |
| 4Y | Death distribution that is a QCD |
The IRS posted 2025 instructions confirming that Code Y must be used in Box 7 to identify QCDs. The total distribution (including the QCD amount) still goes in Box 1, and Box 2a follows standard reporting — the QCD amount is entered, but it remains the taxpayer’s job to claim the exclusion.
Code Y Is Optional for 2025
The IRS announced in October 2025 that using Code Y is optional for the 2025 tax year. IRA custodians may choose to use it, but they are not required to do so for 2025 Forms 1099-R filed in early 2026. This means some taxpayers will see Code 7Y on their 2025 form, while others will see the old Code 7 with no QCD indicator.
Regardless of whether your custodian uses Code Y, you are still responsible for properly reporting the QCD on your Form 1040. Do not assume the 1099-R will do all the work for you.
Boxes 8 Through 12
Box 8 shows the value of annuity contracts included in Box 1. Box 9a shows your percentage of the total distribution if you’re one of multiple recipients. Box 9b shows total employee contributions. Box 10 reports the amount allocable to an IRR (investment in the contract recovery). Box 11 shows the first year a Roth IRA was established. Box 12 indicates FATCA filing requirements. For most QCD situations, these boxes are either blank or not relevant.
Box 14: State Tax Withheld and Box 15: State/Payer’s State Number
These boxes report any state income tax withheld and the payer’s state identification number. Whether state tax applies to your QCD depends on where you live — more on that below.
How to Report Your QCD on Form 1040
Receiving the 1099-R is only half the job. You must correctly report the QCD on your Form 1040 tax return to avoid paying unnecessary taxes.
Line 4a: IRA Distributions (Total)
Enter the full gross distribution from Box 1 of your 1099-R on Line 4a. This includes both the QCD amount and any other IRA withdrawals. If Box 1 shows $50,000, you enter $50,000 here.
Line 4b: IRA Distributions (Taxable Amount)
Subtract the QCD amount from the total distribution and enter the remaining taxable amount on Line 4b. If you took $50,000 total and $10,000 was a QCD, Line 4b shows $40,000. Then write “QCD” next to Line 4b.
This “QCD” notation is essential. Without it, the IRS has no way to reconcile why Line 4a and Line 4b don’t match. The IRS computers flag mismatches, and a missing QCD notation can trigger a CP2000 notice — an automated letter saying you owe additional tax.
Real-World Reporting Example: Margaret’s QCD
Margaret is 76 years old. She has a Traditional IRA worth $400,000. Her RMD for 2026 is $18,000. She directs her IRA custodian to send $11,000 directly to her church (a qualified 501(c)(3) organization) and takes the remaining $7,000 as a regular distribution.
| Form Line | What Margaret Enters |
|---|---|
| 1099-R, Box 1 | $18,000 (full distribution) |
| 1099-R, Box 7 | 7Y (normal distribution + QCD) |
| Form 1040, Line 4a | $18,000 |
| Form 1040, Line 4b | $7,000 (with “QCD” written next to it) |
Margaret’s AGI drops by $11,000 compared to taking the full RMD as taxable income. She also cannot claim a charitable deduction on Schedule A for the $11,000 QCD — the tax-free exclusion is the benefit.
Real-World Reporting Example: Richard and Susan (Married Couple)
Richard is 79 and Susan is 74. They file jointly. Richard makes a $25,000 QCD from his Traditional IRA. Susan makes a $15,000 QCD from her inherited IRA. They each also take additional taxable distributions of $10,000.
| Detail | Richard | Susan |
|---|---|---|
| QCD Amount | $25,000 | $15,000 |
| Other IRA Distribution | $10,000 | $10,000 |
| 1099-R Box 1 | $35,000 | $25,000 |
| Taxable on Line 4b | $10,000 | $10,000 |
Their combined Line 4a shows $60,000. Their combined Line 4b shows $20,000 with “QCD” noted. They reduced their joint AGI by $40,000 through QCDs.
Real-World Reporting Example: David’s Mistake
David is 71. He withdrew $30,000 from his Traditional IRA. He wrote a personal check for $10,000 to his favorite charity the same week. David assumed this counted as a QCD. It does not. Because the money went to David first — not directly from his IRA custodian to the charity — the full $30,000 is taxable income. David may deduct the $10,000 donation on Schedule A if he itemizes, but he cannot exclude it from AGI like a true QCD.
How to Enter QCDs in Tax Software
TurboTax
In TurboTax, navigate to Federal → Wages and Income → Retirement Plans and Social Security. Click on IRA, 401(k), Pension Plan Withdrawals to enter your 1099-R. Type in all the information from your form exactly as it appears.
After entering the 1099-R data, TurboTax presents follow-up questions. One screen asks whether any of the distribution was transferred to a qualified charitable organization. Select Yes and enter the QCD amount. TurboTax will automatically calculate Line 4b and add the “QCD” notation.
Make sure the IRA/SEP/SIMPLE checkbox on your 1099-R is marked. If it is not checked in the software, the QCD follow-up question will not appear. This trips up many TurboTax users.
H&R Block
In H&R Block’s software, go to Federal → Income → IRA and Pension Income (1099-R). Enter your 1099-R data. The software will ask if any portion of the distribution was a charitable distribution. Enter the QCD amount when prompted.
H&R Block handles the Form 1040 lines automatically once you input the QCD amount. Double-check the output on Line 4a and 4b of the generated return to make sure the math is correct.
FreeTaxUSA
Enter your 1099-R in FreeTaxUSA under the Income section. The software asks follow-up questions after you input the 1099-R data. Make sure to check the IRA box next to Box 7 on the entry screen. Without this box checked, FreeTaxUSA will not prompt you about the QCD.
When the software asks about charitable distributions, enter the QCD amount. FreeTaxUSA will reduce the taxable amount on Line 4b and add the QCD notation to your return.
QCD Reporting Mistakes That Cost You Money
Mistake #1: Forgetting to Report the QCD on Form 1040
Your 1099-R shows the full distribution. If you simply enter that number without noting the QCD, the IRS treats the entire amount as taxable income. You’ll pay income tax you don’t owe.
Mistake #2: Not Writing “QCD” Next to Line 4b
Even if you enter the correct taxable amount on Line 4b, failing to write “QCD” creates a mismatch the IRS computers will flag. You may receive a CP2000 notice asking you to explain the difference between Line 4a and Line 4b.
Mistake #3: Having Taxes Withheld from a QCD
If your custodian withholds federal or state taxes from the QCD distribution, the withheld amount never reaches the charity. That portion is not a QCD. It’s a regular taxable distribution. Always request $0 withholding on QCD transfers.
Mistake #4: Making the Check Payable to Yourself
The distribution must go directly from the IRA custodian to the charity. If the check is payable to you, it is a regular distribution — fully taxable. You can then donate the money, but you lose the AGI reduction benefit of a QCD.
Mistake #5: Exceeding the Annual Limit
Any QCD amount over the annual limit ($108,000 in 2025, $111,000 in 2026) is treated as a regular taxable distribution. The excess cannot be carried forward to future years. Plan your QCDs carefully to stay under the cap.
Mistake #6: Donating to a Non-Qualifying Organization
QCDs must go to 501(c)(3) public charities. Donor-advised funds, private foundations, and supporting organizations do not qualify. If you send QCD money to an ineligible organization, the entire distribution is taxable.
Mistake #7: Making a QCD Before Age 70½
You must be 70½ on the date of the distribution, not just turning 70½ that year. If you make the transfer even one day early, it does not count as a QCD. Track your half-birthday carefully.
Mistake #8: Claiming a Charitable Deduction for the QCD
You cannot double-dip. The QCD exclusion from income is the tax benefit. If you also claim the same amount as a charitable deduction on Schedule A, you’ve taken two tax breaks for one donation. The IRS will disallow one of them.
Do’s and Don’ts of QCD Reporting
| Do ✅ | Don’t ❌ |
|---|---|
| Do request your custodian send the check directly to the charity — this is the only way to qualify as a QCD | Don’t have the check made payable to you and then forward it to charity — the IRS treats this as a regular distribution |
| Do write “QCD” next to Line 4b on your Form 1040 — this notation prevents IRS mismatch notices | Don’t leave Line 4b unexplained when it’s lower than Line 4a — the IRS will assume you underreported income |
| Do confirm your charity is a qualified 501(c)(3) before making the transfer — donor-advised funds and private foundations are excluded | Don’t assume every nonprofit qualifies — sending QCD funds to an ineligible organization makes the entire distribution taxable |
| Do keep written acknowledgment from the charity showing the date and amount received — you need this if audited | Don’t rely only on the 1099-R as proof of the QCD — the form does not confirm the charity received the funds |
| Do request $0 federal and state tax withholding on the QCD transfer — withholding reduces the amount reaching the charity | Don’t allow automatic withholding on QCD payments — the withheld portion becomes a taxable distribution |
| Do verify your age is 70½ or older on the date of the distribution — not just the calendar year | Don’t make a QCD the day before you turn 70½ — even one day early disqualifies the entire transfer |
| Do coordinate QCDs with your RMD — your QCD counts toward satisfying your annual Required Minimum Distribution | Don’t take your full RMD first and then try to re-characterize part of it as a QCD — the money must go directly to charity |
Pros and Cons of Using QCDs
| Pros ✅ | Cons ❌ |
|---|---|
| Reduces AGI — QCDs lower your adjusted gross income, which can reduce Medicare Part B premiums (IRMAA), taxation of Social Security benefits, and other income-based surcharges | Age restriction — you must be 70½ or older, so younger IRA owners cannot use this strategy even if they want to give to charity from their IRA |
| No itemizing required — you get the tax benefit whether you take the standard deduction or itemize, unlike Schedule A charitable deductions | Direct transfer only — the money must go straight from the custodian to the charity, which takes more planning and coordination than writing a personal check |
| Satisfies RMDs — QCDs count toward your Required Minimum Distribution, so you can fulfill your RMD obligation while supporting your favorite charities | No deduction allowed — you cannot also claim a charitable deduction for the QCD amount on Schedule A, so the benefit is limited to the income exclusion |
| No tax withholding — when done properly, the full amount reaches the charity with $0 withheld for taxes | Limited to certain IRA types — active SEP and SIMPLE IRAs are excluded, and Roth IRA QCDs provide no additional tax benefit |
| Inflation-adjusted limit — the annual cap increases each year under SECURE 2.0, rising from $100,000 to $111,000 in 2026 | No carryforward — if you exceed the annual limit, the excess is taxable and cannot be carried to the next year |
| Spousal doubling — married couples can each make QCDs from their own IRAs, potentially excluding over $200,000 annually | Custodian cooperation needed — some IRA custodians charge fees or have slow processing for QCD transfers, which can cause timing issues near year-end |
How States Handle QCDs Differently
Federal law excludes QCDs from your gross income. But not all states conform to this federal treatment. Your state’s approach can add or eliminate the tax benefit entirely.
States With No Income Tax
Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming have no personal income tax. QCDs have no state-level tax impact here because no IRA distribution is taxed by the state.
States That Start With Federal AGI
States like New York begin their income tax calculation with your federal adjusted gross income. Because the QCD exclusion already reduces your federal AGI, these states indirectly allow the QCD benefit. You don’t need to take any extra steps.
North Carolina previously required taxpayers to add back QCD exclusions to state income. The governor signed legislation conforming to federal QCD rules beginning with the 2019 tax year, eliminating that add-back requirement.
States That Do Not Conform
New Jersey uses a gross income tax system. It does not conform to the federal QCD exclusion. New Jersey taxpayers must include the QCD amount as income on their state return, even though it’s excluded federally. This means the QCD saves you federal tax but not New Jersey state tax.
States That Exempt Retirement Income
Pennsylvania does not tax any retirement distributions at all. Whether you make a QCD or take a regular distribution, there is no state income tax either way. The QCD adds no extra benefit at the state level in Pennsylvania because all IRA distributions are already state-tax-free.
What This Means for Your Planning
Check your state’s conformity before assuming your QCD saves you state taxes. If you live in a non-conforming state like New Jersey, you may want to adjust your charitable strategy. The federal savings from a QCD are still significant, but the state tax picture may differ.
What Happens If You Get Audited on a QCD
The IRS can audit any return where Lines 4a and 4b don’t match without a clear explanation. QCDs are one of the most common reasons these lines differ. If you face an audit, you’ll need to prove three things: (1) you were 70½ or older at the time of the distribution, (2) the money went directly to a qualified 501(c)(3) organization, and (3) the amount did not exceed the annual limit.
Keep a written acknowledgment from the charity. This letter should show the charity’s name, the date it received the funds, and the amount. Your IRA custodian’s records showing the direct transfer also serve as proof.
If the IRS determines you incorrectly excluded a QCD from income, you face an accuracy-related penalty of 20% on the underpaid tax. For example, if a disallowed $20,000 QCD puts you in the 22% tax bracket, you’d owe $4,400 in additional tax plus an $880 penalty — before interest.
The New Code Y: What Changes and What Stays the Same
The introduction of Code Y for Box 7 on Form 1099-R is the biggest QCD reporting change since QCDs were created in 2006. Before Code Y, the IRS had no way to identify a QCD from the 1099-R alone. It relied entirely on taxpayers self-reporting on Form 1040.
Code Y now lets the IRS match QCD claims on tax returns against information reported by IRA custodians. This creates a verification loop. If your custodian reports Code 7Y on your 1099-R but you fail to exclude the QCD on your Form 1040, you’ll overpay taxes. If you claim a QCD exclusion but your custodian did not report Code Y, the IRS may send a notice asking for documentation.
For the 2025 tax year, Code Y is optional. Some custodians have adopted it early, while others are waiting. Ask your IRA custodian whether they used Code Y on your 2025 Form 1099-R so you know what to expect when filing.
| Before Code Y (Pre-2025) | After Code Y (2025+) |
|---|---|
| Box 7 showed Code 7 or Code 4 only | Box 7 shows Code 7Y or 4Y for QCDs |
| IRS could not identify QCDs from the 1099-R | IRS can now cross-reference QCD claims |
| Taxpayer bore full reporting burden | Custodian shares reporting responsibility |
| No automatic matching of QCD claims | Automated matching reduces errors |
QCD Interaction With RMDs, Social Security, and Medicare
A well-planned QCD does more than just avoid income tax on a charitable gift. It lowers your AGI, which has a ripple effect across your entire tax picture.
RMDs Satisfied Tax-Free
Your QCD counts toward your Required Minimum Distribution. If your RMD is $20,000 and you make a $20,000 QCD, you’ve satisfied your entire RMD with zero taxable income. This is the single most powerful reason retirees use QCDs.
Social Security Taxation Reduced
Up to 85% of Social Security benefits can be taxed based on your “combined income” (AGI + nontaxable interest + half of Social Security). A QCD reduces your AGI, which can drop you below the threshold where Social Security is taxed — or reduce the percentage that’s taxable.
Medicare IRMAA Avoided
Medicare Part B and Part D premiums increase if your modified AGI exceeds certain thresholds (known as IRMAA — Income-Related Monthly Adjustment Amount). A $30,000 QCD could keep your AGI below an IRMAA bracket, saving you hundreds or even thousands of dollars in monthly premium surcharges over the following year.
FAQs
Are QCDs reported on Form 1099-R?
Yes. The full distribution appears in Box 1. Starting in 2025, Box 7 may include the new Code Y to identify the QCD specifically.
Does Box 2a on the 1099-R show my QCD as non-taxable?
No. Most custodians report the full amount in Box 2a. You must claim the QCD exclusion yourself on Form 1040, Line 4b.
Can I make a QCD from a 401(k)?
No. QCDs are only allowed from IRAs. Roll your 401(k) into a Traditional IRA first, then make the QCD from that account.
Do I need to itemize deductions to benefit from a QCD?
No. The QCD exclusion reduces your gross income directly. It works whether you take the standard deduction or itemize on Schedule A.
Can I make a QCD to a donor-advised fund?
No. Donor-advised funds, private foundations, and supporting organizations are excluded under Section 408(d)(8). Only public 501(c)(3) charities qualify.
Does a QCD count toward my RMD?
Yes. A QCD satisfies part or all of your Required Minimum Distribution for the year, as confirmed by IRS regulations.
Can my spouse and I each make a QCD?
Yes. Each spouse can make QCDs up to the annual limit from their own IRA, potentially doubling the household exclusion.
What if my QCD exceeds the annual limit?
No exclusion applies to the excess. Any amount above the annual limit is treated as ordinary taxable income with no carryforward to future years.
Is Code Y required on my 2025 Form 1099-R?
No. The IRS made Code Y optional for the 2025 tax year. Your custodian may or may not include it on your 2025 form.
Can I make a QCD if I’m under 70½?
No. You must be at least 70½ years old on the date of the distribution. The age requirement applies regardless of your RMD starting age.
Do I still need to write “QCD” on my tax return with Code Y?
Yes. Even with Code Y on your 1099-R, you should still write “QCD” next to Line 4b on Form 1040 to prevent IRS mismatch notices.
Will a QCD reduce my state taxes?
No — not in every state. States like New Jersey do not conform to the federal QCD exclusion. Check your state’s rules before assuming state tax savings.
Can I make a QCD from an inherited Roth IRA?
Yes. Inherited Roth IRAs are technically eligible, but since Roth distributions are already tax-free, the QCD provides no additional tax benefit.
What documentation do I need to prove a QCD?
Yes, you need proof. Keep a written acknowledgment from the charity showing the date, amount, and confirmation that no goods or services were received in exchange.
Can I use a QCD to fund a charitable remainder trust?
Yes. SECURE 2.0 allows a one-time QCD election of up to $55,000 (in 2026) to a CRAT, CRUT, or CGA. This is a lifetime election.
Related reading
- Are QCDs Really Allowed from a 401(k)? – Avoid This Mistake + FAQs
- Are Qualified Charitable Distributions Tax Deductible? (w/Examples) + FAQs
- What Are the Requirements for a Qualified Charitable Distribution? (w/Examples) + FAQs
- When Can Qualified Charitable Distributions Start? (w/Examples) + FAQs
- How to Report Qualified Charitable Distribution in Turbotax (w/Examples) + FAQs
- How Does Turbotax Handle Qualified Charitable Distributions? (w/Examples) + FAQs
- What Donations Qualify for the Above-the-Line Charitable Deduction? + FAQs