If you are age 70½ or older, you may use a Qualified Charitable Distribution (QCD) from your IRA to fund a charitable gift annuity (CGA) with charity_name creating fixed lifetime payments.
This strategy combines the tax advantages of a QCD with the income benefits of a gift annuity.
A QCD allows you to transfer funds directly from your IRA to charity_nickname.
In exchange for your gift, charity_nickname agrees to pay you fixed income for life. Payments are backed by the organization’s general resources and do not fluctuate with the market.
Under current law:
This option may appeal to you if:
Our easy-to-use Find Best Asset quiz guides you step-by-step to identify your ideal asset for funding a gift annuity, given your unique situation. Simply answer a few quick questions, and you'll get a personalized recommendation to fund your gift annuity with either cash, appreciated securities, or a qualified charitable distribution (QCD) from your IRA.
Consider Alan, a 75 year old who would like to make a special contribution to support charity_name. Alan has substantial assets in his IRA, and he knows that he is facing a RMD this year. Even though he doesn’t really need the income, Alan knows that his RMD is going to increase his income tax. Instead, Alan chooses to make a $55,000 QCD to charity_name in exchange for a charitable gift annuity which will pay him $3,710 (7%) per year for the rest of his lifetime. Alan understands that he is allowed to make this election only one time, but he is looking forward to securing a stream of payments for his lifetime while reducing his RMD and making a generous contribution to charity_name.
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