Donors can now fund a Charitable Gift Annuity (CGA), and other life-income gifts, using funds from tax-deferred IRAs.
A Charitable Gift Annuity, funded with tax-deferred IRA funds can now be counted as a Qualified Charitable Contribution (QCD) and applied to your Required Minimum Distribution (RMD), but there are limitations and special provisions, such as:
- a maximum of $50,000 per individual,
- funding a CGA, or multiple CGAs totaling no more than $50,000, can only be done once in
your lifetime, and
- there are different tax stipulations than CGAs funded from other sources.
To see if this opportunity makes sense for you and your circumstances, talk with your financial advisor or contact a planner at Barnabas Foundation (888-448-3040 or [email protected].)
This change is one of many provisions of the Secure Act 2.0, passed in late December, 2022. For more information from Barnabas Foundation about other ways in which the Secure Act 2.0 enhances retirement benefits, click here.