Charitable Gift Annuities
Update: Federal law has just changed permitting IRA charitable rollovers until 12/31/14
Are you 70 1/2 or Older? Up to $100,000 of your IRA Can be Used Tax-Free When You Donate to A.R.E.
Individuals age 70½ or older can now rollover IRA funds to charities tax-free. This provision, as passed by Congress, is effective only through December 31, 2014.
Here are some details about this opportunity:
• Individual must be 70½ or older
• The distribution must be rolled over from your IRA directly to the charity
• The maximum tax-free distribution you can make in a year is $100,000
The amount rolled over to a charity will count toward your required minimum distributions for the year
• If you want to donate money from a 401(k) or similar plan, you must first roll the money into an IRA and then to the charity
Please contact Susan Luscomb at (757) 457-7125 or Marianna Theo at (757) 457-7215 for details.
You will need the attached form to email or fax to your IRA administrator. Download (pdf)
What is a Charitable Gift Annuity?
In return for your giving cash or marketable securities, you and/or another beneficiary will be paid a fixed and dependable annual income for life. The annuity is
determined by your age and whether paid to one or two beneficiaries. Gift annuities can be created for a minimum of $10,000.
How might a Charitable Gift Annuity benefit you?
- The rate of return on a gift annuity is higher than Certificates of Deposit, and is unaffected by the stock market;
- The ability to reinvest the sale of appreciated stock or mutual funds and provide an income while minimizing
- Insures dependable payments you can count on and that you cannot outlive;
- Provides a generous immediate Charitable Deduction (that can be spread out over five years) as well as a portion of your annuity is tax-free;
- A wonderful way to provide financial assistance to an elderly parent, sibling or other person in a tax-advantaged manner.
Charitable Gift Annuities
Immediate Tax Benefits and Annuity Payments
The following examples are based on the suggested rate of return from the American Council on Gift Annuities (ACGA), effective January 1, 2012, unchanged as
of July 1, 2013. Please call A.R.E.’s Office of Development for your sample report based on your exact age. Ask about survivor options. There is a minimum investment
Example of a $25,000 Immediate Charitable Gift Annuity
| Age 76
For a sample personalized report, please contact:
Susan Luscomb at (757) 457-7125 or
Marianna Theo at (757) 457-7215