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QCDs and Medicare IRMAA: Using Charitable Gifts to Manage Premium Surcharges

Josh Rendler, CFP®

Creator of Motion Retirement

Updated 2026-10-12 · Tax year 2026 · Figures checked October 10, 2026 · How this is checked

Do QCDs count toward IRMAA?

No. A QCD (money sent straight from your IRA to a charity at 70½ or older, not taxed as income, up to a yearly limit) is left out of the income Medicare uses for IRMAA (an extra Medicare charge you pay when your income is above a set line). Compared with taking that money out and giving cash, it lowers that income dollar for dollar. That income is your AGI (your total income minus a few set subtractions, the number many tax rules start from) plus tax-free interest, usually from your tax return two years before. A gift to a donor-advised fund (a giving account at a charity that holds your gifts until you pick where they go), or any gift you itemize, does not lower AGI. So it does not lower IRMAA.

  • A QCD lowers the income Medicare uses for IRMAA. A donor-advised fund gift or other itemized gift does not, because those come off after AGI.
  • IRMAA usually uses your tax return from two years before. A QCD made in 2026 usually affects 2028 premiums.
  • In 2026 the first IRMAA tier starts above $218,000 on a joint return and above $109,000 for single filers. One dollar over a line puts you in the whole tier.
  • A QCD changes your premium only if it brings you below a tier line. If you're far from a line, it still saves income tax but the premium stays the same.
  • A Roth conversion or a big capital gain isn't a life-changing event, so it isn't grounds for an IRMAA appeal. A spouse's death is, if it lowers your income enough to reduce or remove IRMAA. The optional Form SSA-44 is one way to report it.
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IRMAA is the extra amount some people pay on top of the normal Medicare Part B and Part D premiums. Social Security sets it from your MAGI (your AGI with a few things added back, used by rules like Medicare's charge).

IRMAA uses your AGI plus tax-exempt interest.1 It generally uses the return from two years earlier, so 2026 premiums use 2024 returns.21 Each person on Medicare whose income is above the line for their filing status pays it.3

A QCD is money your IRA firm sends straight to a charity. One phrase comes up in the rule below: your taxable income (the part of your income that tax rates are actually charged on).

A QCD is left out of your income, so it never reaches your AGI.45 Because of that, you can’t also deduct it as a charitable gift.4 If your IRA holds after-tax money, the QCD comes first from the money that would be taxed.4

So a QCD you make this year can lower the premiums you pay two years from now.

Does a QCD lower IRMAA?

Yes. Each dollar you give by QCD, instead of taking it out and giving cash, is one less dollar of IRMAA income.

Compare that with taking the money out, such as for your RMD (the least you must take out of a regular IRA each year once you reach a set age), and writing a check. The withdrawal lands in your AGI. The check may get a deduction if you itemize. Two words come up in the rule below: itemized deductions (costs like charity gifts you list one by one on your return instead of the flat amount) and the standard deduction (the flat amount most people can subtract from income without listing costs).

To deduct a gift the usual way, you must itemize on Schedule A.6 You get either your itemized deductions or the standard deduction, not both.7 Itemized deductions lower your taxable income, but not your AGI.89 So they don’t lower measures built on AGI, like the income used for IRMAA.9

So the withdrawal still counts in full for IRMAA. The 2026 deduction for people who don’t itemize works the same way. Four words come up in the rule below: a public charity (a charity like a church, school or hospital that gets the best tax treatment for gifts), a supporting organization (a charity set up to help one or more specific public charities), property (anything you own other than cash, such as stock or a fund, not just a house), and carryovers (the part of a gift too big to deduct this year, saved for up to five later years).

From 2026, if you don’t itemize, you can deduct up to $1,00010 of cash gifts, or $2,00010 on a joint return.10 The cash must go to a public charity, or one of a few special foundations, not a donor-advised fund or a supporting organization.1112 Gifts of stock or other property don’t count, and neither do carryovers from earlier years.11 It lowers your taxable income, but not your AGI.13

Way of giving Lowers the income IRMAA uses?
QCD from an IRA Yes
Cash or check you itemize No
Gift to a donor-advised fund No
Gift of stock that went up in value No, beyond never reporting the gain
2026 cash deduction if you don’t itemize No

Related video I Tested 4 Ways to Beat RMDs on $2M — Here's What Won

Does a donor-advised fund gift lower IRMAA?

No. A gift to a donor-advised fund is an itemized deduction, so the rule above applies.

A QCD is not an option here either. One more kind of charity comes up in the rule below: private foundations (a charity funded mostly by one person, family or company, not a public charity).

A QCD must go to a public charity or one of a few special kinds of foundation.14 It can’t go to a donor-advised fund, a supporting organization, or most private foundations.14 The charity generally has to be organized in the United States or a U.S. possession.15 Being organized under U.S., state or D.C. law also counts.15

See DAF vs. QCD.

You may hear that a donor-advised fund gift “offsets” a Roth conversion. It can offset some of the income tax. It does not offset the conversion’s effect on IRMAA. See Roth conversions and giving.

What income counts for IRMAA?

It is the same income as the rule at the top of this page: AGI plus tax-free interest.

So these all raise it:

  • IRA withdrawals and RMDs
  • Roth conversions
  • Capital gains, including year-end payouts from mutual funds
  • Interest and dividends
  • Interest from city or state bonds

Capital gain payouts from a mutual fund are taxed as long-term gains in the year you get them.16 That’s true however long you’ve owned the fund’s shares.16

A QCD is the main charitable gift that keeps IRA money out of that total.

Which tax year does Medicare use for IRMAA?

AGI plus tax-exempt interest, usually from two years earlier.123

Social Security uses the newest tax data the IRS gives it. That is usually from two years before, and no more than three. 2

That lag matters for giving in two ways:

  • A QCD made in 2026 usually affects 2028 premiums. The benefit shows up two years later.
  • Income counts before Medicare starts. Income at 63 usually sets premiums at 65. QCDs start later, so most people see the effect at about 72½. The age rule: 70½ or older on the day the money leaves the IRA.17

How do the IRMAA tiers work?

IRMAA is a set of income ranges. Each range has one fixed Part B premium. For Part D, each range adds a fixed extra amount to whatever your plan charges. Social Security calls these sliding-scale tables, set by law. 18

Here is where the first tier starts: Starts above $218,000 joint or $109,000 single in 2026.1920. The full table is below.

The premium does not rise slowly inside a range. One dollar over a line puts you in the whole tier. One dollar under keeps you out. 19 That’s why a small QCD can matter a great deal just above a line. In the middle of a range, it doesn’t change the premium at all.

2026 IRMAA tiers (based usually on 2024 income)

A tier applies when income is above the “starts above” figure. The top tier applies at or above its figure. 19

Tier Joint return: starts above Single, head of household, qualifying surviving spouse: starts above
1 $218,00019 $109,00019
2 $274,00019 $137,00019
3 $342,00019 $171,00019
4 $410,00019 $205,00019
5 (at or above) $750,00019 $500,00019

The separate table for married people filing separately applies when the couple lived together at some point in the year. Social Security assumes they did. 21 If you lived apart from your spouse for the whole year, the single table applies instead. 22 Social Security first takes your statement, under penalty of perjury, that you lived apart all year. That change covers only the spouse who signs it. 23

The premium year you’re planning for is usually two years after the gift. So the line that will apply usually isn’t known yet when you give.

Does IRMAA apply to each spouse?

Yes. Each spouse on Medicare is charged on their own, as the rule at the top says.

Social Security’s pages don’t say the next part in one sentence. By my reading, both spouses on a joint return are measured against the same joint income. So crossing a joint line usually raises the premium for both spouses on Medicare. A QCD that brings joint income under a line helps both.

When does a QCD not change your premium?

When it doesn’t move you across a tier line. If your income is well below the first tier, or well inside a tier, the premium stays the same. The QCD still saves income tax on the money that stays out of income. The IRMAA benefit is easy to oversell, so it’s worth checking where you sit first.

Worked example · tax year 2026A QCD that saves income tax but doesn't change the tier
Assumptions
  • Married filing jointly; both spouses are 74 and enrolled in Part B and Part D.
  • Projected 2026 MAGI, with the RMD taken in cash, is $25,000 above an IRMAA tier line. Call that line L.
  • They plan to give $10,000 to charity. Their RMD is more than $10,000.
  • Assume the line for the 2028 premium year is still L. SSA publishes the real figure later.
  • This example only compares MAGI with an IRMAA line. The senior deduction comes off after AGI, so it doesn't move MAGI.
Step Cash gift after the RMD $10,000 QCD
2026 MAGI L + $25,000 L + $25,000 − $10,000 = L + $15,000
Position against the line $25,000 over $15,000 over
2028 premium tier (each spouse) Same tier Same tier
Income kept out of AGI $0 $10,000

The QCD keeps $10,000 out of AGI. That saves income tax and can help other things tied to AGI. It doesn’t change either spouse’s 2028 premium, because they are still over the line. Getting under would take at least $25,000 less income.

How might a QCD be sized to stay under an IRMAA tier?

The usual way is to work back from the nearest tier line, not to pick a round number. A QCD can only lower your income by as much as you give.

The QCD limit is $111,00024 per IRA owner in 2026, up from $108,00024 in 2025.2425 It is adjusted for inflation, so it can rise in some years and stay the same in others.24 The limit covers all of your QCDs for the year together, not each IRA separately.26 On a joint return, each spouse has their own limit for the IRAs they own.25

The order of your withdrawals matters too.

A QCD counts in the year the IRA firm pays it.27 The first dollars out of your IRA each year count toward your RMD.27 By my reading, a taxable withdrawal taken earlier in the year can’t be turned into a QCD later.27

Custodians set their own QCD steps and year-end cutoffs. It’s worth confirming the timeline with yours well before December 31.

Worked example · tax year 2026A QCD that moves a couple below a tier line
Assumptions
  • Married filing jointly; both spouses are 74 and enrolled in Part B and Part D.
  • Projected 2026 MAGI, with the RMD taken in cash, is $4,000 above an IRMAA tier line. Call that line L.
  • They planned to give $10,000 to charity in cash after taking the RMD. The RMD is more than $10,000.
  • Assume the line for the 2028 premium year is still L. In reality it may change; SSA publishes it later.
  • This example only compares MAGI with an IRMAA line. The senior deduction comes off after AGI, so it doesn't move MAGI.
Step Cash gift after the RMD $10,000 QCD
2026 MAGI L + $4,000 L + $4,000 − $10,000 = L − $6,000
Position against the line $4,000 over $6,000 under
2028 premium tier (each spouse) Higher tier One tier lower
People on Medicare affected 2 2
Room left for surprises n/a $6,000

With the QCD, each spouse’s 2028 Part B and Part D charges are set one tier lower. The savings equal the gap between the two tiers’ monthly amounts, times 12 months, times two people. Those 2028 amounts aren’t published yet. The QCD also keeps $10,000 out of 2026 income.

Related video Roth Conversions At Age 60, 65 OR 70? (Avoid This Costly Tax Mistake)

Can a reporting mistake cancel the IRMAA benefit?

Yes. It is up to you, or your tax preparer, to show the QCD on your return. Four names come up in the rule below: Form 1099-R (the tax form that reports money paid out of an IRA or an annuity), an inherited IRA (an IRA you get from someone who died), line 4a (the lines on your tax return where IRA withdrawals and QCDs are reported), and Form 8606 (the tax form that tracks money in an IRA you already paid tax on).

Your IRA firm reports a QCD on Form 1099-R as an ordinary IRA payout.28 It uses code 7 from your own IRA, or code 4 from an inherited IRA.28 For 2026 it may add code Y, but it doesn’t have to.29 Code Y pairs only with codes 4, 7 or K, and none of those is a Roth IRA code.30 On the 2025 Form 1040, put the whole payout on line 4a.31 Put only the part that isn’t a QCD on line 4b, and check box 2 on line 4c.3128 If you ever made nondeductible IRA contributions, Form 8606 figures line 4b.32

If that step is missed, the whole payout shown on Form 1099-R is taxed as income. It also counts in the AGI that Medicare sees. See how to report a QCD.

Does a QCD help with other costs tied to income?

Yes. The same lower AGI can also shrink the tax on your Social Security.

To test whether your Social Security is taxed, add half your benefits to your other income, including tax-exempt interest.3334 That test starts from AGI, so income left out of AGI, like a QCD, doesn’t count.34 Above a base amount, up to 50% of benefits can be taxed, and up to 85% above a higher one.33

It can also protect the senior deduction (an extra deduction for people 65 and older from 2025 through 2028).

For 2025 through 2028, each person 65 or older by year end gets an extra $6,00035 deduction.3536 You get it whether or not you itemize.35 Married couples must file jointly, and each person needs a Social Security number on the return.36 It shrinks by $635% of modified AGI above $75,00035, or $150,00035 on a joint return.35 On a joint return, the cut comes off each spouse’s amount, so a couple who both qualify lose $120 per $1,000 over.37

See how giving fits with retirement taxes.

Can you appeal IRMAA after a Roth conversion or a big capital gain?

No, not as a life-changing event.

After certain life events, such as a spouse’s death, you can ask Social Security to use a more recent year’s income.38 The event must lower your income enough to lower or end your IRMAA.38 One-time income, such as a Roth conversion or a capital gain, doesn’t count as such an event.39

If a conversion or a sale pushes you over a line, the higher premium usually applies later. It hits the premium year that uses that income, normally two years on.

That makes the order of your plans matter. A conversion and a QCD in the same year pull income in opposite directions. A QCD can free up room under a line that the conversion then uses. See Roth conversions and giving.

What if a spouse dies?

A spouse’s death is one of the life events in the rule above. Say it lowers income enough to reduce or remove IRMAA. Then the survivor can ask Social Security to use a newer tax year instead of the two-year-old return.

Form SSA-44 is one way to report it, and it is optional. 38

A survivor usually moves to the single table above. Those lines are lower, so the same income can land in a higher tier than it did on a joint return. 19 By my reading, the switch to the single table happens on its own. It takes effect once a premium year uses a return filed with the new status. 2 Whether the premium actually drops depends on how far income falls against the lower single lines. The change can come sooner if the death lowers income enough to reduce or remove IRMAA. The survivor reports it as a life-changing event. Then they can ask Social Security to use a newer tax year instead. An estimate of this year’s income and filing status can also be used. 38 See giving after a spouse dies.

For CPAs and attorneysLife-changing event requests: scope and effective date

A request based on a life-changing event applies only to the beneficiary who reports it; SSA does not extend it to a spouse or ex-spouse. 40 The request can be made any time after the event and the MAGI reduction. SSA needs proof of the death and tax information (or an estimate of MAGI and filing status) for the year to be used. Ordinarily the new determination isn’t retroactive to a prior premium year, with a narrow exception for events in October through December reported by March 31. 38

Questions people also ask

Can my QCD be larger than my RMD? Yes, up to the yearly limit.

A QCD counts toward your required minimum distribution (RMD) for the year.41 Taking out more than your RMD doesn’t earn credit toward a later year’s RMD.42

See QCDs and RMDs.

Is tax withheld from a QCD? No.

A QCD has no federal income tax withheld.43 Asking for a QCD counts as choosing no withholding.43

What are the downsides of a QCD for IRMAA? It changes the premium only when it crosses a line. It also helps only up to the amount you give. And two limits apply:

  • 70½ or older on the day the money leaves the IRA.17
  • A traditional or inherited IRA, or a SEP or SIMPLE IRA with no employer contribution that year.4445

Common mistakes

  • Expecting a deduction to lower IRMAA. Itemized, so it lowers taxable income but not AGI.6798
  • Forgetting tax-free interest. AGI plus tax-exempt interest, usually from two years earlier.123
  • Aiming exactly at the line. The future line isn’t known, and one dollar over puts you in the whole tier.
  • Looking at this year’s premium. It was usually set by income from two years ago. Today’s gifts usually affect premiums two years out.
  • Missing the QCD on the tax return. The 1099-R shows an ordinary payout, so the return has to show the QCD, as above.

Sources (45)

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  1. Medicare IRMAA is determined from MAGI, defined as AGI plus tax-exempt interest, generally from the tax return two years before the premium year (2026 premiums generally use 2024 returns).

  2. IRMAA is based on modified AGI = AGI (Form 1040 line 11) plus tax-exempt interest, using the most recent tax data IRS can provide: generally the return from two years before the premium year (2026 premiums generally use 2024 returns), but not more than three years prior.

    • SSA POMS HI 01101.010 (12/02/2025), A.1the beneficiary’s adjusted gross income (AGI) (found on line 11 of the Internal Revenue Service (IRS) tax filing form 1040), plus • tax-exempt interest income (line 2a of IRS Form 1040). Checked 2026-10-09.
    • SSA POMS HI 01101.010 (12/02/2025), A.2Generally, the information is from two years prior to the year for which the premium is being determined, but not more than three years prior. For example, 2026 premiums are generally based on 2024 tax return information. Checked 2026-10-09.

  3. IRMAA is assessed per Medicare beneficiary: each enrolled beneficiary whose MAGI is above the threshold for their tax filing status pays an IRMAA; the joint-filer threshold is a single figure for the joint return.

    • SSA POMS HI 01101.001, A.1and have modified adjusted gross income (MAGI), (see HI 01101.010 ) above the threshold for their tax filing status pay an IRMAA in addition to the monthly premium. Checked 2026-10-09.
    • SSA POMS HI 01101.010, BMarried, filing jointly $194,000 $206,000 $212,000 $218,000 Checked 2026-10-09.

  4. A QCD is excluded from gross income and cannot also be claimed as a charitable deduction. Only the portion that would otherwise be taxable can be a QCD; when an IRA has nondeductible basis, the QCD is treated as coming first from the taxable (pre-tax) money, overriding the normal pro-rata rule.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(E)shall not be taken into account in determining the deduction under section 170. Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B), flush languageA distribution shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to subparagraph (A). Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(D)Notwithstanding section 72, in determining the extent to which a distribution is a qualified charitable distribution Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDsIf your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income. Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDsYou can't claim a charitable contribution deduction for any QCD not included in your income. Checked 2026-10-09.

  5. Adjusted gross income means, for an individual, gross income minus the deductions listed in § 62(a), so an amount excluded from gross income never enters AGI.

    • 26 U.S.C. § 62 (LII), § 62(a)For purposes of this subtitle, the term "adjusted gross income" means, in the case of an individual, gross income minus the following deductions: Checked 2026-10-12.

  6. To deduct charitable contributions in the ordinary way, an individual must itemize on Schedule A.

    • IRS Publication 526 (2025), DeductionsGenerally, to deduct a charitable contribution, you must itemize deductions on Schedule A (Form 1040). Checked 2026-10-09.

  7. No itemized deduction is allowed unless the individual elects to itemize for the year; the taxpayer takes either itemized deductions or the standard deduction.

    • 26 U.S.C. § 63 (LII), § 63(e)(1)Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year. Checked 2026-10-10.

  8. Itemized deductions (including the ordinary charitable deduction) are, by definition, deductions other than those allowable in arriving at adjusted gross income, so they reduce taxable income but not AGI.

    • 26 U.S.C. § 63 (LII), § 63(d)the term “ itemized deductions ” means the deductions allowable under this chapter other than— (1) the deductions allowable in arriving at adjusted gross income Checked 2026-10-10.

  9. AGI is gross income minus the deductions listed in § 62(a). Itemized deductions are, by definition, the deductions other than those allowable in arriving at AGI, and taxable income is gross income minus the deductions allowed. So an itemized charitable deduction (including one for a gift to a donor-advised fund or of appreciated stock) reduces taxable income but not AGI, and therefore not MAGI measures built on AGI, such as the IRMAA MAGI (AGI plus tax-exempt interest).

    • 26 U.S.C. § 62 (LII), § 62(a)For purposes of this subtitle, the term “adjusted gross income” means, in the case of an individual, gross income minus the following deductions: Checked 2026-10-10.
    • 26 U.S.C. § 63 (LII), § 63(d)For purposes of this subtitle, the term “itemized deductions” means the deductions allowable under this chapter other than— (1) the deductions allowable in arriving at adjusted gross income, and (2) any deduction referred to in any paragraph of subsection (b). Checked 2026-10-10.
    • 26 U.S.C. § 63 (LII), § 63(a)Except as provided in subsection (b), for purposes of this subtitle, the term “taxable income” means gross income minus the deductions allowed by this chapter (other than the standard deduction). Checked 2026-10-10.

  10. Beginning in 2026, taxpayers who do not itemize may deduct up to $1,000 ($2,000 joint) of cash gifts to § 170(b)(1)(A) public charities, excluding gifts to supporting organizations and donor-advised funds.

    • 26 U.S.C. § 170 (LII), § 170(p)the deduction under this section shall be equal to the deduction, not in excess of 1,000 ($2,000 in the case of a joint return) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Amendment note, P.L. 119-21 § 70424(a)substituted “$1,000 ($2,000” for “$300 ($600” Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Effective date note, P.L. 119-21 § 70424(b)shall apply to taxable years beginning after December 31, 2025 . Checked 2026-10-09.

  11. The non-itemizer deduction counts only cash contributions made during the year to § 170(b)(1)(A) organizations, not to § 509(a)(3) supporting organizations or for a new or existing donor-advised fund, and is computed without carryovers and without the 0.5% floor.

    • 26 U.S.C. § 170 (LII), § 170(p)which would be determined under this section if the only charitable contributions taken into account in determining such deduction were contributions made in cash during such taxable year (determined without regard to subsections (b)(1)(G)(ii), (b)(1)(I), and (d)(1)) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(p)(1)-(2)to an organization described in section 509(a)(3), or (2) for the establishment of a new, or maintenance of an existing, donor advised fund Checked 2026-10-09.

  12. The § 170(p) deduction for non-itemizers (cash gifts, beginning 2026) does not apply to contributions for the establishment or maintenance of a donor-advised fund, or to § 509(a)(3) supporting organizations.

    • 26 U.S.C. § 170 (LII), § 170(p)(2)(2) for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2) ). Checked 2026-10-09.

  13. For a taxpayer who does not itemize, taxable income is AGI minus the standard deduction and other listed deductions, including the § 170(p) non-itemizer charitable deduction. That deduction therefore reduces taxable income but not AGI.

    • 26 U.S.C. § 63 (LII), § 63(b)the term “ taxable income ” means adjusted gross income , minus— (1) the standard deduction , (2) the deduction for personal exemptions provided in section 151, (3) any deduction provided in section 199A, (4) the deduction provided in section 170(p), Checked 2026-10-09.

  14. The recipient must be a § 170(b)(1)(A) organization. Donor-advised funds and § 509(a)(3) supporting organizations are excluded by statute. Private non-operating foundations are excluded because they are not § 170(b)(1)(A) organizations (only foundations described in § 170(b)(1)(F) — operating, pass-through, and pooled-fund — are listed).

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(i)(other than any organization described in section 509(a)(3) or any fund or account described in section 4966(d)(2)) Checked 2026-10-09.
    • IRS Notice 2007-7, A-35other than supporting organizations described in § 509(a)(3) or donor advised funds that are described in § 4966(d)(2). Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(A)(vii)(vii) a private foundation described in subparagraph (F), Checked 2026-10-09.

  15. A 'charitable contribution' under § 170(c)(2) must go to an organization created or organized in the United States or a possession, or under US, state or DC law. Because a QCD must be one for which a deduction for the entire distribution would be allowable under § 170, a gift paid directly to a foreign organization generally cannot be a QCD.

    • 26 U.S.C. § 170 (LII), § 170(c)(2)(A)(A) created or organized in the United States or in any possession thereof, or under the law of the United States Checked 2026-10-10.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(C)only if a deduction for the entire distribution would be allowable under section 170 Checked 2026-10-10.

  16. Mutual fund capital gain distributions are reported on Form 1099-DIV and are taxed as long-term capital gains for the year received, regardless of how long the fund shares were held, so they add to that year's income.

    • IRS Publication 550, Ch. 1, Capital Gain DistributionsReport capital gain distributions as long-term capital gains, regardless of how long you owned your shares in the mutual fund or REIT. Checked 2026-10-10.

  17. The IRA owner (or beneficiary) must be at least age 70½ on the date the distribution is made. This age was not changed when the RMD starting age rose to 73 (and later 75); QCD eligibility can begin years before RMDs are required.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(ii)which is made on or after the date that the individual for whose benefit the plan is maintained has attained age 70½ Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, Qualified charitable distributions (QCDs)You must be at least age 70½ when the distribution is made. Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 1, Required beginning date FAQYou must begin receiving required minimum distributions by April 1 of the year following the year you reach age 73. Checked 2026-10-09.

  18. SSA describes IRMAA as a set of statutory percentage-based sliding-scale tables, with three sets of tables, including a separate table for married filing separately.

  19. 2026 IRMAA (based generally on 2024 MAGI): the first tier begins above $218,000 MAGI for married filing jointly and above $109,000 for single, head of household, or qualifying surviving spouse. Joint tiers: >$218,000–$274,000; >$274,000–$342,000; >$342,000–$410,000; >$410,000–<$750,000; ≥$750,000. Single tiers: >$109,000–$137,000; >$137,000–$171,000; >$171,000–$205,000; >$205,000–<$500,000; ≥$500,000. Total 2026 Part B premium by tier: $284.10, $405.80, $527.50, $649.20, $689.90 per month; Part D IRMAA $14.50, $37.50, $60.40, $83.30, $91.00 plus plan premium. Tiers are step functions: one dollar over a boundary applies the full tier.

    • SSA POMS HI 01101.010 (12/02/2025), B. MAGI thresholdsMarried, filing jointly $194,000 $206,000 $212,000 $218,000 All other filing statuses $97,000 $103,000 $106,000 $109,000 Checked 2026-10-09.
    • SSA POMS HI 01101.020 (12/02/2025), B.2 (2026, married filing jointly)More than $218,000 but less than or equal to $274,000 $284.10 $14.50 + Plan premium More than $274,000 but less than or equal to $342,000 $405.80 $37.50 + Plan premium More than $342,000 but less than or equal to $410,000 $527.50 $60.40 + Plan premium More than $410,000 but less than $750,000 $649.20 $83.30 + Plan premium Greater than or equal to $750,000 $689.90 $91.00 + Plan Premium Checked 2026-10-09.
    • SSA POMS HI 01101.020 (12/02/2025), B.1 (2026, single/HOH/QSS)More than $109,000 but less than or equal to $137,000 $284.10 $14.50 + Plan premium More than $137,000 but less than or equal to $171,000 $405.80 $37.50 + Plan premium More than $171,000 but less than or equal to $205,000 $527.50 $60.40 + Plan premium More than $205,000 but less than $500,000 $649.20 $83.30 + Plan Premium Greater than or equal to $500,000 $689.90 $91.00 + Plan Premium Checked 2026-10-09.

  20. SSA's table of IRMAA base MAGI thresholds shows the first joint threshold rising each year from 2023 to 2026: $194,000 (2023), $206,000 (2024), $212,000 (2025), $218,000 (2026); single/other $97,000, $103,000, $106,000, $109,000. Whether later years keep rising is not stated (inference only).

    • SSA POMS HI 01101.010, B, table column headingsIRS Filing Status 2023 2024 2025 2026 Checked 2026-10-10.
    • SSA POMS HI 01101.010, B, table rowsMarried, filing jointly $194,000 $206,000 $212,000 $218,000 Checked 2026-10-10.

  21. When the IRS reports a tax filing status of married filing separately, SSA assumes the couple lived together at some point in the tax year, which is what puts the beneficiary on the separate married-filing-separately IRMAA table.

    • SSA POMS HI 01101.020 IRMAA Sliding Scale Tables, B.3, NOTE to the married filing separately tableWhen the Internal Revenue Service (IRS) provides us the tax filing status of married filing separately, assume the couple lived together at some point in the tax year. Checked 2026-10-11.

  22. A beneficiary who filed married filing separately but lived apart from their spouse throughout the entire tax year has IRMAA determined from the table for single, head-of-household or qualifying surviving spouse filers, not the married-filing-separately table.

  23. To be moved off the married-filing-separately IRMAA table for living apart all year, the beneficiary must give SSA an attestation to that effect under penalty of perjury, and the change is effective only for the spouse who attests.

  24. The annual QCD exclusion was $100,000 through 2023 and is inflation-indexed for tax years beginning after 2023 (SECURE 2.0 § 307), rounded to the nearest $1,000: $105,000 for 2024, $108,000 for 2025, $111,000 for 2026.

  25. The limit applies per IRA owner. On a joint return each spouse may exclude up to the limit, but only from IRAs that spouse owns; one spouse cannot use the other's unused limit.

    • IRS Publication 590-B (2025), Ch. 2, QCDsIf you file a joint return, your spouse can also have a QCD and exclude up to $108,000. Checked 2026-10-09.
    • IRS Notice 2007-7, A-34For married individuals filing a joint return, the limit is $100,000 per individual IRA owner. Checked 2026-10-09.

  26. The QCD exclusion cap applies to the aggregate amount of qualified charitable distributions with respect to a taxpayer during a taxable year, not per account.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(A)So much of the aggregate amount of qualified charitable distributions with respect to a taxpayer made during any taxable year which does not exceed $100,000 shall not be includible in gross income of such taxpayer for such taxable year. Checked 2026-10-09.

  27. QCDs count for the calendar year in which the trustee makes the distribution (exclusion is per taxable year). Under the RMD rules, the first amounts distributed in a year are treated as the RMD, so a taxable withdrawal taken earlier in the year satisfies the RMD and cannot be converted into a QCD by a later charitable distribution.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(A)made during any taxable year which does not exceed Checked 2026-10-09.
    • 26 CFR § 1.402(c)-2 (LII), § 1.402(c)-2(f)(2)(i) examplethe first $5,000 distributed will be treated as the required minimum distribution and will not be an eligible rollover distribution Checked 2026-10-09.

  28. The custodian reports the QCD as an ordinary IRA distribution on Form 1099-R (code 7 for an owner, code 4 for an inherited IRA); there is no QCD-specific code on 2025 forms. For 2026, the new code Y may optionally be added. On Form 1040 (2025), the taxpayer enters the gross amount on line 4a, the non-QCD taxable portion on line 4b, and checks box 2 on line 4c. The older "write QCD next to line 4b" instruction has been replaced by the line 4c checkbox on the 2025 form.

  29. Under the current Form 1099-R instructions, a QCD may be reported with code Y paired with code 7 (non-inherited IRA), code 4 (inherited IRA), or code K (IRA assets without a readily available fair market value). Code Y is optional for tax year 2026.

    • Instructions for Forms 1099-R and 5498 (current online version, covers 2026), Box 7a, Qualified charitable distributions (QCDs)To report a QCD, use code Y with: Code 7 for a QCD from a non-inherited (normal distribution) IRA, Code 4 for a QCD from an inherited (death distribution) IRA, or Code K for a QCD reporting distributions of traditional IRA assets not having a readily available FMV that are either from non-inherited or inherited IRAs. Checked 2026-10-09.

  30. Under the 2026 Form 1099-R instructions, code Y must be used together with code 4, 7 or K; none of those is a Roth IRA distribution code (Roth IRA distributions use codes Q, T or J), so the instructions provide no code Y combination for a QCD from a Roth IRA. Code Y is optional for tax year 2026.

  31. On the 2025 Form 1040, if all or part of an IRA distribution is a QCD, the total goes on line 4a; if only part is a QCD, the non-QCD part goes on line 4b; box 2 on line 4c is checked. When the IRA has nondeductible basis and a distribution goes to charity, Form 8606 is filed (Pub 590-B Amy example), and the basis portion may be deductible on Schedule A subject to AGI limits.

    • Instructions for Form 1040 (2025), Lines 4a and 4b, Exception 3If all or part of the distribution is a qualified charitable distribution (QCD), enter the total distribution on line 4a. If the total amount distributed is a QCD, enter -0- on line 4b. If only part of the distribution is a QCD, enter the part that is not a QCD on line 4b unless Exception 2 applies to that part. Check box 2 on line 4c. Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDs, Amy exampleBecause Amy made a distribution of nondeductible contributions from her IRA, she must file Form 8606 with her return. Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDs, Amy examplethe $5,000 portion of the distribution attributable to the nondeductible contributions can be deducted as a charitable contribution, subject to adjusted gross income (AGI) limits. Checked 2026-10-09.

  32. On the 2025 Form 1040, Exception 2 for lines 4a/4b: if you received a distribution from a non-Roth IRA and made nondeductible contributions to any traditional IRA for 2025 or an earlier year, enter the total on line 4a and use Form 8606 to figure line 4b. Rollovers are Exception 1.

    • Instructions for Form 1040 (2025), Lines 4a and 4b, Exception 2Exception 2. If any of the following apply, enter the total distribution on line 4a and see Form 8606 and its instructions to figure the amount to enter on line 4b. You received a distribution from an IRA (other than a Roth IRA) and you made nondeductible contributions to any of your traditional IRAs for 2025 or an earlier year. Checked 2026-10-10.

  33. To test whether Social Security benefits are taxable, compare one-half of benefits plus all other income (including tax-exempt interest) with a base amount for the filing status; above it, part of benefits may be taxable, generally up to 50%, and up to 85% above a second, higher amount. The base amounts are fixed dollar figures (not inflation-indexed in the publication).

    • IRS Publication 915 (2025), Are Any of Your Benefits Taxable?compare the base amount (explained later) for your filing status with the total of: One-half of your benefits; plus All your other income, including tax-exempt interest. Checked 2026-10-09.
    • IRS Publication 915 (2025), Base amountYour base amount is: $25,000 if you are single, head of household, or qualifying surviving spouse; Checked 2026-10-09.
    • IRS Publication 915 (2025), Maximum taxable partGenerally, up to 50% of your benefits will be taxable. However, up to 85% of your benefits can be taxable if either of the following situations applies to you. The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Checked 2026-10-09.

  34. Whether, and how much of, Social Security benefits are taxable depends on modified adjusted gross income plus one-half of benefits compared with a base amount; that modified AGI starts from adjusted gross income (increased by tax-exempt interest). Income excluded from AGI, such as a QCD, therefore does not enter the test.

    • 26 U.S.C. § 86 (LII), § 86(b)(1)the modified adjusted gross income of the taxpayer for the taxable year, plus (ii) one-half of the social security benefits received during the taxable year, exceeds (B) the base amount Checked 2026-10-09.
    • 26 U.S.C. § 86 (LII), § 86(b)(2)increased by the amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax. Checked 2026-10-09.

  35. For 2025 through 2028, each taxpayer (and spouse on a joint return) age 65+ by year end gets an extra $6,000 deduction, available whether or not they itemize, reduced by 6% of modified AGI above $75,000 ($150,000 joint). Married couples must file jointly; a valid SSN is required.

    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(i)In the case of a taxable year beginning before January 1, 2029 , there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual Checked 2026-10-09.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iii)(I)shall be reduced (but not below zero) by 6 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Schedule 1-A, Part VYou can claim this deduction whether you claim the standard deduction or itemize deductions Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Schedule 1-A, Part VIf you are married, you must file a joint return with your spouse to claim this deduction. Checked 2026-10-09.

  36. The senior deduction's 'qualified individual' is the taxpayer (and, on a joint return, the spouse) who has attained age 65 before the close of the taxable year; the qualified individual's Social Security number must be on the return; married individuals must file jointly; the phaseout uses AGI increased only by foreign-income exclusions (§§ 911, 931, 933), so income excluded from gross income, such as a QCD, does not count.

    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(ii)the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and (II) in the case of a joint return, the taxpayer’s spouse, if such spouse has attained age 65 before the close of the taxable year. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iii)(II)the term “ modified adjusted gross income ” means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iv)(I)Clause (i) shall not apply with respect to a qualified individual unless the taxpayer includes such qualified individual ’s social security number on the return of tax for the taxable year. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(v)this subparagraph shall apply only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year. Checked 2026-10-10.

  37. On Schedule 1-A, the 6% phaseout of the senior deduction is computed once from modified AGI and subtracted from each qualifying spouse's $6,000 separately; the two reduced amounts are then added. On a joint return, each $1,000 of MAGI above the threshold therefore reduces the couple's combined senior deduction by $120.

  38. Death of a spouse is one of eight life-changing events (LCEs) for IRMAA. A beneficiary who has had an LCE that significantly reduces MAGI (a reduction that lowers or eliminates IRMAA) may ask SSA for a new initial determination using a more recent tax year; the request can be made any time after the event. Form SSA-44 is the optional form for reporting it. The determination applies only to the beneficiary who reports it. Ordinarily the new determination is not retroactive to a prior premium year, unless the event occurred in October-December of that prior year and the request is received by March 31 of the current premium year. SSA needs proof of death and tax information or an estimate of MAGI and filing status for the year to be used.

    • SSA POMS HI 01120.005 Life Changing Events, C. List of life changing eventsA Life-Changing Event (LCE) can be one or more of the following eight events: 1. Death of spouse ( HI 01120.010 ); 2. Marriage ( HI 01120.015 ); 3. Divorce or annulment ( HI 01120.020 ); 4. Work reduction ( HI 01120.025 ;) 5. Work stoppage ( HI 01120.030 ); 6. Loss of income-producing property ( HI 01120.035 ); 7. Loss of employer pension ( HI 01120.040 ); or 8. Receipt of settlement payment from a current or former employer ( HI 01120.043 ). Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, A. Description of life changing eventsA “significant” reduction in MAGI is a reduction that decreases or eliminates the income-related monthly adjustment amount (IRMAA) for a specific tax year. A beneficiary who has experienced an LCE causing a significant reduction in MAGI may request us to make a new initial determination using a more recent tax year, than the tax year used previously to impose IRMAA. Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, A, NOTEBeneficiaries may use the optional Form SSA-44 (Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event) to report a life-changing event with a significant reduction in income. Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, B.1A beneficiary may request a new initial determination any time after an LCE and a significant reduction in MAGI has occurred. The LCE may have occurred at any time in the past. Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, A, NOTEA report of an LCE with a significant reduction in MAGI applies only to the beneficiary reporting. Checked 2026-10-10.
    • SSA POMS HI 01120.010 Life Changing Event (LCE) – Death of Spouse, A. PolicyThe death of a spouse is an LCE that could result in a “significant” reduction in MAGI and a change in a tax filing status for a beneficiary. Checked 2026-10-10.
    • SSA POMS HI 01120.010 Life Changing Event (LCE) – Death of Spouse, B. What Evidence is Needed to Support the ChangeIf the spouse of a beneficiary has died, SSA will need proof of the death and tax information for the tax year to be used. Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, B.2Ordinarily, we do not make a determination retroactive to a prior premium year on a new initial determination, unless the LCE causing the reduction occurs in the last three calendar months of the immediately prior premium year and we receive the request for a new initial determination for the preceding premium year by March 31, of the current premium year. Checked 2026-10-10.
    • SSA POMS HI 01120.010 Life Changing Event (LCE) – Death of Spouse, BAn estimate of MAGI and tax filing status for the tax year they are requesting SSA to use (current premium year or PY-1), or Checked 2026-10-10.

  39. SSA's list of IRMAA life-changing events is exclusive. One-time income that raises MAGI, including capital gains from the sale of property and the conversion of an IRA, is a non-qualifying event, so a Roth conversion or a large capital gain does not by itself support a new initial determination.

    • SSA POMS HI 01120.005 Life Changing Events, D. Examples of non-qualifying life-changing eventsOur list of LCEs for IRMAA purposes is exclusive. Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, D. Examples of non-qualifying life-changing eventsSome examples of one-time income that cause an increase and are non-qualifying events (NQEs) include: • Capital gains from the sale of property; • Lottery winnings; • Casino winnings; • Conversion of an IRA; or • Cashing bonds. Checked 2026-10-10.

  40. An IRMAA life-changing-event determination applies only to the beneficiary who reports it; SSA does not extend its findings to a nonreporting spouse or ex-spouse, who must contact SSA themselves.

    • SSA POMS HI 01120.005 Life Changing Events, B.1, NOTEIf a beneficiary reports an LCE with a significant reduction in MAGI that could affect a spouse or ex-spouse, we do not extend its findings to the nonreporting spouse. If the LCE affects the nonreporting spouse, it is their responsibility to contact us. Checked 2026-10-10.

  41. A QCD counts toward the IRA owner's (or beneficiary's) required minimum distribution for the year.

    • IRS Publication 590-B (2025), Ch. 1, Required minimum distributions noteA qualified charitable distribution will count towards your required minimum distribution. Checked 2026-10-09.
    • IRS Notice 2007-7, A-42The amount distributed in a qualified charitable distribution is an amount distributed from the IRA for purposes of §§ 408(a)(6), 408(b)(3), and 408A(c)(5). Checked 2026-10-09.

  42. Distributing more than the RMD in one year (including through a QCD larger than the RMD) does not create a credit toward future years' RMDs.

    • IRS Publication 590-B (2025), Ch. 1, Miscellaneous Rules for Required Minimum Distributions, More than minimum receivedIf, in any year, you receive more than the required minimum amount for that year, you won't receive credit for the additional amount when determining the minimum required amounts for future years. Checked 2026-10-09.

  43. A QCD is not subject to federal income tax withholding: an IRA owner who requests a QCD is deemed to have elected out of withholding. The IRA trustee may rely on the owner's reasonable representations that the distribution qualifies.

    • IRS Notice 2007-7, Q-40/A-40A qualified charitable distribution is not subject to withholding under § 3405 because an IRA owner that requests such a distribution is deemed to have elected out of withholding under § 3405(a)(2). Checked 2026-10-10.
    • IRS Notice 2007-7, Q-40/A-40the IRA trustee, custodian, or issuer may rely upon reasonable representations made by the IRA owner. Checked 2026-10-10.

  44. QCDs may come from a traditional IRA, an inherited IRA if the beneficiary is 70½. Only an amount that would otherwise be includible in gross income can be a QCD (§ 408(d)(8)(B)), so a qualified (tax-free) Roth IRA distribution cannot be one. A SEP or SIMPLE IRA is eligible only if it is not "ongoing" — i.e., no employer contribution for the plan year ending with or within the tax year. 401(k), 403(b) and other employer plans are not IRAs and cannot make QCDs.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)means any distribution from an individual retirement plan (other than a plan described in subsection (k) or (p)) Checked 2026-10-09.
    • IRS Notice 2007-7, A-36that is neither an ongoing SEP IRA described in § 408(k) nor an ongoing SIMPLE IRA described in § 408(p). Checked 2026-10-09.
    • IRS Notice 2007-7, A-37is available for distributions from an IRA maintained for the benefit of a beneficiary after the death of the IRA owner if the beneficiary has attained age 70½ Checked 2026-10-09.
    • Instructions for Forms 1099-R and 5498 (current online version, covers 2026), Box 7a, Qualified charitable distributions (QCDs)Code 4 for a QCD from an inherited (death distribution) IRA Checked 2026-10-09.

  45. A SEP or SIMPLE IRA is 'ongoing' (and cannot make a QCD) if an employer contribution is made for the plan year ending with or within the owner's tax year. SIMPLE salary-reduction deferrals are made as elective employer contributions, so money deferred from your own pay into a SIMPLE IRA makes it ongoing.

    • IRS Notice 2007-7, A-36a SEP IRA or a SIMPLE IRA is treated as ongoing if it is maintained under an employer arrangement under which an employer contribution is made for the plan year ending with or within the IRA owner's taxable year in which the charitable contributions would be made. Checked 2026-10-10.
    • 26 U.S.C. § 408 (LII), § 408(p)(2)(A)(i)as elective employer contributions to a simple retirement account on behalf of the employee Checked 2026-10-10.