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QCD to Gift Annuity

unlock the power of your ira

taxpayers 70 1/2 or older can use a QCD to fund a charitable gift annuity (CGA).
To put it simply, you can now make a charitable gift to the catholic foundation, and in return, receive fixed payments for life.
- Charitable Gift Annuity (CGA)
  
  Receive fixed income for life when your gift is established. After your lifetime, the remaining amount becomes part of your legacy at the Catholic Foundation.
  
  Benefits:
  
  Receive fixed payments for life.
  
  Part of the income is tax-free.
  
  You may qualify for a federal income tax charitable deduction when you itemize.
  
  If funded with appreciated securities, no upfront capital gains tax is due.
  
  You can defer payments until some time in the future.
- Qualified Charitable Distribution (QCD)
  
  Allows individuals who are 70 1/2 years or older to donate up to $105,000 total to one or more charities directly from a taxable IRA instead of taking their required minimum distributions.
  
  Does a QCD make sense for you?
  
  A QCD can benefit indivduals who are required to take a minimum distribution from an IRA, but don't need the funds and would face increased tax liabilities if they took the distribution as income.
  
  A QCD can also benefit individuals who would like to reduce the baleance in an IRA to lower future required minimum distributions.
- QCD to Gift Annuity
  
  Under a law effective after 2023, some donors can make a QCD in exchange for a Charitable Gift Annuity. Use your IRA assets to receive fixed payments for life.
  
  How does it work?
  
  Allows a tax-free QCD from an IRA account to establish a Charitable Gift Annuity.
  
  You must be 70 1/2 or older to take advantage of this opportunity.
  
  You can contribute up to $53,000, once during your lifetime in one tax year.
  
  To qualify, the QCD must go directly from your IRA custodian to the Catholic Foundation of Oklahoma.
FAQs: QCD to Gift Annuity
- Does a portion of the $53,000 limit rollover if unused in a single calendar year?
  No, there is no rollover or carry forward. This is a once-in-a-lifetime election, which can only occur in one tax year. The $53,000 must be used within one calendar year.
- What are the age requirements?
  Those who are at least 70 1/2 years or older at the time the QCD contribution of any kind is made are eligible. A non-donor spouce under 70 1/2 can be included as an income beneficiary and your gift will qualify as long as the CGA payout amount is at least 5%.
- What age do Required Minimum Distributions (RMDs) begin?
  SECURE 2.0 increased the required minimum distribution age to 73 as of Jan. 1, 2023. However, if you turned 72 in 2022, you had to take your first RMD by April 1, 2023.
- Are QCD CGA annuity payments taxable?
  Yes, all QCD CGA payments are taxed as ordinary income.
- Who should I contact with questions?
  While we always advise you to consult with your trusted financial adviser about your specific giving, the Catholic Foundation of Oklahoma is happy to answer your questions. Please contact Mary Smith at msmith@cfook.org or (405)709-2706.