After age 70-1/2, the Internal Revenue Service (IRS) allows taxpayers to make qualified charitable distributions (QCD) of up to $100,000 per year from their Individual Retirement Accounts (IRA) to nonprofits as a way to impact worthy causes while avoiding income taxes on withdrawals from tax-sheltered IRAs.
In December 2022, the 117th Congress enacted changes as part of the Consolidated Appropriations Act 2023 (H.R. 2617) that impact charitable giving from Individual Retirement Accounts (IRAs). The bill raises the age at which the owner of an IRA or other qualified retirement plan must start taking required minimum distributions (RMDs). It increases the age from 72 to 73 for individuals who turn 72 after December 31, 2022, and turn 73 before January 1, 2033. It increases this age to 75 for individuals who turn 74 after December 31, 2032.
The Alpha Chi Omega Foundation qualifies as a recipient of qualified charitable distributions and required minimum distributions from your IRA. To learn more about the tax benefits of making your annual gift through a QCD from your IRA and to use our automated IRA rollover gift tool, visit our planned giving site.
The Legacy IRA Act (passed as part of the Consolidated Appropriations Act 2023) allows donors over age 70-1/2 to make a one-time qualified charitable distribution of up to $50,000 in exchange for a charitable gift annuity (CGA) or to fund a charitable remainder trust (CRT) or charitable remainder unitrust (CRUT). The Alpha Chi Omega Foundation is a qualified beneficiary of CGAs, CRTs and CRUTs. To learn more about these options for your QCD, contact Chief Development Officer Marsha Grady at email@example.com or visit our planned giving site.