You can now make a distribution from your IRA to create a CGA. This new type of qualified charitable distribution (QCD) was established through the Consolidated Appropriations Act in December 2022. There is a one-time maximum transfer of up to $50,000 through a QCD to establish a CGA. Specific conditions apply so we encourage you to contact our office or your financial advisor to determine if this is a good fit for your circumstances.
CGAs have always been mutually beneficial, and increasing rates combined with a new gift option are just another incentive to support Illinois Institute of Technology while helping yourself. Now's the time to take advantage of this giving opportunity!
Life income gifts help you to offer meaningful support to Illinois Institute of Technology while providing you with income for life and leaving the remainder to Illinois Tech for the purpose you choose.
There are several options for making a charitable gift that pays you income. One of the most popular (and one that does not require an attorney), is a Charitable Gift Annuity (CGA). A CGA is a simple contract between you and Illinois Tech. You can fund a CGA with cash, transfer appreciated stock that isn't paying a dividend or convert another underperforming asset like a savings account, money market fund or CD bearing little or no interest. You'll receive payments for life and a tax deduction for the year that you make the gift.
There's a CGA option for everyone. If you're still working, you can fund an annuity today and schedule to receive payments when you plan to retire. If you're nearing retirement or already retired, you have the option of deferring your payments a bit longer or receiving them right away.
You can make your gift, take a deduction, and begin receiving annuity payments right away. This option is available for donors who are age 60 or older.
Take an immediate deduction and defer payments to a date of your choosing; usually advantageous for younger donors. Deferment allows for larger and less taxed payments.
This is like a deferred gift annuity, but you do not need to decide today when you will want payments to begin. The longer you wait to receive payments, the higher the payout rate and the larger your income payments will be.
CAA 2023 allows for a one-time distribution to create a life income gift, most commonly a charitable gift annuity (CGA). This new type of QCD is a one-time maximum transfer of $50,000 in exchange with a charity for a CGA. Important terms and conditions apply; please contact our office or your financial advisor.
This type of gift will reduce the value of your IRA, therefore reducing your future RMDs (as they will be based on the lower value). Also, a CGA provides a constant guaranteed lifetime stream of revenue. Using a distribution from your IRA to create an annuity is a savvy new way to diversify your holdings and lock in a great return. Act now for the best rates!