IRA Rollover to Gift Annuity
September 5, 2023If you would like to increase your retirement income and leave an impactful gift to GBMC, then the charitable gift annuity is a worthwhile option to consider.
Do you own an IRA?
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Would you like to give more to GBMC (or another charity) but need your retirement income?
- Have you considered a charitable gift annuity in the past but were not ready?
If you answered “yes” to these questions, the Secure 2.0 Act provides a once-in-a-lifetime effortless way to help GBMC – and yourself – using a tax-free distribution from your IRA.
In December of last year, Congress passed a series of retirement changes to make it easier for retirees to become philanthropists. As of January 1, 2023, retirees aged 70.5 or older can donate up to $50,000 from their IRAs to fund gift annuities. While charities have offered gift annuities for years, the donations could not be made directly from retirement accounts until now. This change creates an important opportunity for charities and donors alike.
What is a Charitable Gift Annuity?
A charitable gift annuity (CGA) is a contract between you and GBMC. In exchange for your donation, we agree to pay you a fixed income for your lifetime. Upon your death, the annuity ceases, and the remaining principal is used to further our mission.
How does the Charitable Gift Annuity Work?
A charitable gift annuity (CGA) is a simple written agreement signed by you and a representative of GBMC. Once you contribute cash from your IRA – up to $50,000 per year – the CGA begins to make monthly or quarterly payments to you for your lifetime. The payment is based on your age to your nearest birthday. The IRA owner gets a minimum payout of 5% annually, taxed as ordinary income.
NOTE: Suggested maximum rates for single life. Source: American Council on Gift Annuities
Benefits of a Charitable Gift Annuity
- Lifetime income and financial security
- Attractive payment rates
- Opportunity to support GBMC
To learn more about this opportunity, or any planned giving vehicles, please contact: John Jeppi, Senior Director of Planned Giving at 443-849-3303 or jjeppi@gbmc.org
*Much of the content of this article is provided by Crescendo Interactive, Inc. 2023. Used with permission.
