IRA QCD RMD Offset Calculator

Quantify how a qualified charitable distribution trims taxable income from your IRA’s required minimum distribution. Enter the RMD you must take and the amount you plan to send directly to charity to see how much of the distribution stays off your tax return and the dollars saved at your marginal tax rates.

Total required minimum distribution for the year across the IRA you will draw from.
Amount of IRA dollars you will send directly to charity as a QCD.
Optional — defaults to 22% if blank. Enter your combined marginal federal rate.
Optional — defaults to 0% when blank to reflect no state income tax.

Confirm QCD eligibility, annual limits, and tax reporting with your IRA custodian and tax advisor.

Examples

  • Example 1 — $28,000.00 RMD, $20,000.00 QCD, 22% federal, 5% state ⇒ RMD satisfied by QCD: 71.43% ($20,000.00 applied) | Taxable RMD remaining: $8,000.00 | After-tax cash kept post-QCD: $6,160.00 | Tax savings: $5,400.00 (federal $4,400.00, state $1,000.00) | Without a QCD you would owe tax on $28,000.00 and net $20,160.00, so the QCD shelters $20,000.00 from income.
  • Example 2 — $52,000.00 RMD, $120,000.00 QCD, 24% federal, state blank ⇒ RMD satisfied by QCD: 100.00% ($52,000.00 applied) | Taxable RMD remaining: $0.00 | After-tax cash kept post-QCD: $0.00 | Tax savings: $12,480.00 (federal $12,480.00, state $0.00) | Without a QCD you would owe tax on $52,000.00 and net $39,520.00, so the QCD shelters $52,000.00 from income. QCD limit reached—$20,000.00 will count as a normal charitable deduction instead.

FAQ

Can I apply a QCD to my spouse’s RMD?

Each IRA owner must complete their own RMD. Run the calculator separately for each spouse if both plan to send QCDs from their respective accounts.

How do inherited IRAs factor in?

Beneficiaries age 70½ or older can use QCDs on inherited IRA RMDs. Enter the inherited account’s annual RMD the same way you would for your own IRA.

Do Roth IRAs qualify?

No. Roth IRAs do not have lifetime RMDs, so QCDs are only relevant for traditional IRAs, SEP IRAs (inactive), and SIMPLE IRAs (inactive).

Additional Information

  • The SECURE 2.0 Act indexed the $100,000 annual QCD limit for inflation beginning in 2024, but this calculator caps applied QCDs at $100,000 to match current IRS guidance.
  • QCDs must transfer directly from the IRA custodian to an eligible charity to avoid taxation; personal reimbursements disqualify the distribution.
  • Combined marginal tax rate adds federal and state inputs but is capped at 99% to avoid impossible outcomes.
  • Amounts above the QCD limit still go to charity but are treated as itemized deductions subject to normal AGI thresholds.

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