Increased QCD gift limit in 2024!

New ways to make an impact through tax-savvy gifts from IRAs.

You may have seen articles about donating IRA assets to a charity. For several years, donors 70 ½ or older have been able to make tax-free transfers from an IRA to a qualified charity. This transfer is known as a qualified charitable distribution, or “QCD.”

Increase in QCD limit in 2024:

  • Starting in 2024, donors 70½ years old or older may make a QCD from their IRA to transfer up to $105,000 to qualified charities. This is an increase from the previous $100,000 limit.
  • If the donor is 73 or older, the transfer will also count toward the amount they are required to withdraw from their IRA each year (the “required minimum distribution”). As of last year, these required withdrawals begin at age 73; this age will increase to 75 in 2033.
  • A QCD can be designated to the Annual Fund, an endowment fund, or many other uses on campus. Please note, however, that QCDs cannot be made to donor advised funds or in exchange for benefits such as the right to purchase basketball tickets, membership, or tickets to an event.

Increase in QCD Gift Annuity limit in 2024:

There’s also a new way to support Duke by using QCD transfers from an IRA. Taxpayers older than 70 ½ can make a one-time tax-free QCD transfer of up to $53,000 to create a charitable gift annuity. This is an increase from the $50,000 limit in 2023.

  • Receive the security of a fixed income! A gift annuity established through a transfer from an IRA can benefit you and/or your spouse.
  • QCD transfers are generally tax-free and will usually count towards your RMD if you are 73 or older.
  • The annuity rate is based on your current age, with a minimum rate of 5%. Payments from a gift annuity funded through an IRA are fixed (the amount won’t change from year to year) and are fully taxable as ordinary income.
  • This option can only be used in a single calendar year during your lifetime. Your spouse can use this option in the same year or a different year.
  • The annuity remainder will benefit the Duke areas and programs that mean the most to you.

Sample one-life annuity rates (as of Jan. 1, 2024; subject to change)

Age 73 75 80 85
Rate 6.7% 7.0% 8.1% 9.1%

You can learn more about gift annuities funded through a QCD transfer in The Wall Street Journal’s 2023 article, “The Retirement Tax Break That Will Pay You an Annual Income” or contact Duke’s Office of Gift Planning at giftplanning@duke.edu or (919) 681-0464.


This information is provided with the understanding that neither Duke University nor the authors are providing legal, accounting, or other professional advice or counsel. Please consult your personal counsel about the financial, tax, and legal implications of any gift.

TAGS: Required minimum distribution Charitable Giving Strategies qualified charitable distribution IRA charitable gift annuities

About the author

Jane Lee Heuser

jane.heuser@duke.edu

As the Associate Director of Trusts and Estates, Jane manages the day-to-day administration of Duke’s charitable trust and gift annuity accounts.  Prior to joining Duke, Jane managed trusts and estates at a Durham law firm and served as Vice President with the Northern Trust Company in Chicago. Jane loves to travel, is an avid baker and keeps busy with her family and volunteer work.