A Once-in-a-Lifetime Opportunity

Use your IRA now to fund a gift annuity and support UMW in the future

If you are 70½ or older, you have an opportunity this year to transfer up to $53,000 from your traditional IRA to fund a charitable gift annuity. This giving option allows you to satisfy a portion of your required minimum distribution (RMD),  create a fixed rate of income for yourself, and support students and programs at UMW.

This option can be used only once in each person’s lifetime. Here are a few guidelines:
• Your IRA administrator must transfer the funds directly to the University of Mary Washington Foundation.
• You will not pay income tax on the transfer of funds, nor will you receive an income tax deduction for the gift.
• Once established, you can begin receiving regular annuity payments at a fixed rate from the UMW Foundation.
• Since the funds in your IRA had not previously been taxed, you will need to pay taxes on the annuity payments. The upside on this form of income and related tax liabilities is that all will be spread out over several years.
• If two spouses are of the qualifying age, each may be able to transfer up to $53,000 for a charitable gift annuity, and each may receive annuity payments.
• At the time you create a charitable gift annuity, you may request any residuals from your gift benefit the Fund for Mary Washington, an academic department, or other University programs.

To learn more about creating a charitable gift annuity through your IRA, contact Jan Clarke in the Office of Gift Planning at jclarke@umw.edu or 540-654-2064. As always, please consult with your financial advisor and plan administrator.