IRA transfers to Charitable Gift Annuities now possible!

For many years, the charitable community has sought legislation that would treat the transfer from an IRA to a life-income gift as a qualified charitable distribution (QCD). We are thrilled to report that the Consolidated Appropriations Act of 2023, which was recently passed by Congress and signed by the President, contains such a provision. This came about because legislation known as the SECURE 2.0 Act, which contains numerous provisions related to retirement plans, was included in the omnibus bill.

What is the “Legacy IRA” legislation?

Under certain circumstances, a donor who is 70 ½ or older can make a one-time tax-free Qualified Charitable Distribution (QCD) from their IRA in exchange for charitable gift annuity (CGA).

How does it work?

  • The Legacy IRA plan allows a tax-free QCD from an IRA account to establish a charitable gift annuity.

  • You must be 70 ½ 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 Boston College.