News You Can Use: The Tax-Savvy Gift That Pays You Back
Use your IRA to establish a charitable gift annuity
Beginning January 1, 2023, the Secure Act 2.0 allows taxpayers 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 a fixed, lifetime payment. 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 new.
As The Wall Street Journal recently 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 retirees the opportunity to make a charitable impact while receiving fixed payments for life.
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.