Discover a tax-free way to create a charitable gift annuity
If you have an IRA and are at least 70½ years old, the Secure 2.0 Act provides a once-in-a-lifetime way to contribute up to $50,000 to a charitable gift annuity through a tax-free distribution from your IRA.
What is a Charitable Gift Annuity?
A charitable gift annuity (CGA) is a contract between you and the UMW Foundation. In exchange for your charitable gift, the Foundation agrees to pay you a fixed income for your lifetime. Upon your passing, the annuity ceases, and the remaining principal is used to support academic programs and students.
How Does it Work?
Once you contribute cash from your IRA, the CGA begins to make monthly or quarterly payments to you
for your lifetime. The payment rate is based on your age to your nearest birthday. The agreement benefits you by providing lifetime income, attractive payment rates, reduced taxable estate value for your heirs, and an opportunity to support UMW students.
What Else Should You Know?
Charitable gift annuities may be set up to pay income to you and/or your spouse. Under the Secure 2.0 Act, you must be 70½ or older to take advantage of this tax-free IRA rollover opportunity. If you do not meet the age requirement for this opportunity, contact the UMW Office of Gift Planning to learn about other charitable gift annuity options.
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