Beginning in 2023, the Secure Act 2.0 allows taxpayers 70 ½ or older to establish a charitable gift annuity with a qualified charitable distribution (QCD) from their individual retirement account (IRA). With a charitable gift annuity, a donor makes a gift to a public charity—like Duke—in exchange for  fixed, lifetime payments. While taxpayers have established gift annuities with gifts of cash or stock for many years, the ability to establish a gift annuity with a transfer from an IRA is a more recent development.

As the Wall Street Journal has reported, “the new law comes as the wealthiest generation in history begins to retire, with much of that wealth in retirement accounts.” This tax-savvy giving strategy now offers eligible retirees the opportunity to make a charitable impact using retirement assets, while receiving fixed payments for life.

This option can only be used in a single calendar year during a taxpayer’s lifetime, and distributions must come from a traditional IRA. In  2024, you can establish an IRA Gift Annuity with up to $53,000. A married couple can each contribute $53,000 from their respective IRAs, for a total of $106,000.

To learn more about this planned giving option, read Duke’s IRA QCD brochure or contact Duke’s Office of Gift Planning at (919) 681-0464 or giftplanning@duke.edu

_{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.}

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Gift Planning

giftplanning@duke.edu

Duke’s Office of Gift Planning has charitable planning professionals who are available to work with you and your financial advisors. Contact them today at giftplanning@duke.edu or (919) 681-0464.