See How the new Legacy IRA Act of 2022 Could Allow You to Receive Income for Life
and Make a Gift to Support Survivors of Abuse
Individuals who are 70 ½ and older could make gifts through an IRA-qualified charitable distribution (QCD) of up to $100,000 a year directly to the charity. But starting in 2023, there are additional new opportunities to use an IRA QCD to create a life income gift that both pays beneficiaries an income for life and provides a gift for Resilience: Advocates for Ending Violence.
The Legacy IRA Act of 2022 is a new law that allows individuals to donate a portion of their traditional IRA assets to charity without incurring a tax penalty. This act makes it easier for donors to support their favorite charitable organizations and causes by allowing them to donate their pre-tax retirement savings. This means that donors can make a charitable contribution while reducing their taxable income, potentially lowering their tax bill. The act is designed to encourage charitable giving and help support nonprofits across the country.
Under the Legacy IRA Act of 2022, donors who are at least 70.5 years old can donate up to $100,000 per year from their IRA directly to a qualifying charity. This type of donation is known as a Qualified Charitable Distribution (QCD) and has several advantages over traditional charitable giving. One of the primary benefits is that the donation is not subject to income tax, which means that donors can support their favorite charities while minimizing their tax liability. Additionally, QCDs count towards the donor’s Required Minimum Distribution (RMD), which is the minimum amount that individuals must withdraw from their traditional IRA accounts each year. This means that donors can meet their RMD obligations while supporting charitable causes they care about.
*This information is not intended to as legal, financial or tax advice. Please consult with your legal, financial or tax advisor in your planned giving decisions.
To learn more about how to leave a Legacy at Resilience, contact:
Christina Scarpino
Development Director
ChristinaS@ResilienceMI.org
