Creating a Life Income Gift: The new law allows the owner of an IRA to make a onetime QCD of up to $50,000 to fund a Life Income Gift, such as a Charitable Gift Annuity (CGA). A CGA allows you to support RPI’s work while receiving fixed payments for life based on your age. This gift will qualify towards your Required Minimum Distribution (RMD) in the year it is made.
Charitable Gift Annuity (CGA)
Below is an outline of this opportunity and payment structure:
QCD Gift
$50,000
Rate
8.1
Age
82
Payment
$4,050
per year for life
If you are interested in establishing a CGA at RPI, please contact the Office of Gift Planning for a custom Illustration based on your age.
QCD’s indexed for inflation: The Secure Act 2.0 Act adjusts the $100,000 annual limit on an IRA owner’s outright QCD for inflation beginning in 2024. The act also adjusts the $50,000 onetime distribution ceiling that applies to QCD’s used to fund Life Income Gifts. These inflation provisions could be important for the future, especially if inflation remains higher going forward.
Creating a Legacy with your IRA: Adding RPI as a beneficiary on your retirement assets, such as an employee retirement plan, IRA, or tax-sheltered annuity, is an excellent way to make a gift and create a legacy. A gift of these assets can shield you or your heirs from taxes while funding Rensselaer. If you have already named RPI as a beneficiary of your IRA, please let The Office of Gift Planning know so we can properly thank you and ensure your future gift is directed in the way most meaningful to you.
Charitable Remainder Trust (CRT) Replaces the Stretch IRA: The Stretch IRA, allowing non spousal beneficiaries to take inherited IRA distributions over their life expectancy has been eliminated. Beneficiaries must now take distributions within ten years, with a few exceptions. A CRT is an irrevocable trust that distributes a percentage of its assets to one or more individual beneficiaries for life or a term of up to 20 years. After that, the remaining assets go to charity like RPI. It’s possible to name a CRT the beneficiary of your IRA. The RPI Office of Gift Planning can share language for your trust or will to create a testamentary CRT.