Incentives for Charitable Giving
Your IRA is more than just a retirement account—it’s a powerful tool for charitable planning. Congress has expanded QCDs while the SECURE Act reshaped retirement plan rules. Together, these laws create important opportunities for donors who want to give strategically.
Why This Matters
- Scale of opportunity: Baby Boomers hold trillions in retirement assets—the largest pool of potential legacy gifts.
- Dual benefits: Reduce taxes, meet RMDs, create lifetime income (via CGA/CRT), and leave a legacy.
- Future growth: As Congress sees the success of these provisions, charitable IRA options may expand further.
What You Can Do
Review your IRA and estate plan with a qualified advisor. Choose the right path:
- Use annual QCDs (up to $108,000 in 2025) for direct charitable support, or
- Consider the one-time life-income QCD (up to $54,000 in 2025) if guaranteed payments for you/your spouse are valuable.
- Execution: Arrange QCDs as direct transfers from your IRA custodian; retain the charity’s acknowledgment for your records.
Fine Print (common misunderstandings)
- The life-income QCD is once per lifetime and must be completed in a single tax year (not spread over multiple years).
- CGA/CRT funded under this rule must be QCD-only (no add-on cash or securities).
- At modest amounts, a CGA is typically more practical than a CRT due to administrative costs.
The gift planning information presented on this site is intended as general. It is not to be considered tax, legal, or financial advice. Please consult your own personal advisors prior to any decision.
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