January 31, 2023

Exciting New Gifting Opportunity With a Lifetime of Financial Benefits

With the signing of the “Consolidated Appropriations Act” an exciting new provision of the Legacy IRA Act has officially gone into effect, allowing a donor to fund a charitable gift annuity with a qualified charitable distribution from their IRA.

What does this mean for you? If you’re over 70 ½, you are now allowed to make a charitable contribution to Kline Galland from your IRA accounts and receive a lifetime of payments in return. This new gift plan combines a charitable gift annuity and a Qualified Charitable Distribution from an IRA.

A charitable gift annuity is a simple contract between you and Kline Galland promising to pay you a fixed amount of money each year for life. The amount paid to you will depend upon your age at the time of your gift and does not change for the rest of your lifetime.

A Qualified Charitable Distribution is a contribution from your IRA to Kline Galland. You can make a Qualified Charitable Distribution if you are at least age 70½. Unlike most distributions from your retirement account, you pay no income tax on a Qualified Charitable Distribution.

Under the new law, donors can now make a Qualified Charitable Distribution in exchange for a charitable gift annuity. There are some rules and limitations. You can do it only once and there is a limit of $50,000. The entire payment you receive from your charitable gift annuity will be subject to income tax. There is no income tax deduction for your contribution (although there is no tax on your Qualified Charitable Distribution either).

For more information, please contact Nate Nusbaum, Chief Philanthropy Officer at (206) 456-9702 or NateN@KlineGalland.org. Nate  is happy to work with you and your advisors to help determine how this new option might work for you.

Nate Nusbaum
Chief Philanthropy Officer
(206) 456-9702