QCD Charitable gift annuity

Submitted by John Fedchak on Fri, 2023-08-11 20:07

Can I make a withdrawal from my Traditional IRA for purchasing a Charitable Gift Annuity in he amount of $10,000 and have that count as a QCD? Is there a minimum or maximum amount?

Will the annuity payout still have proportional amounts tax free every year?

I have read this is allowed in 2023.



Submitted by David Mertz on Fri, 2023-08-11 22:23

  • To be a QCD, the amount must be sent by the IRA custodian directly to the charitable gift annuity, you have not made this election in a previous taxable year (although it can be done by multiple QCDs in that single taxable year), is funded only by QCDs and is limited to $50,000 (adjusted for inflation after 2023).  The charitable gift annuity must commence fixed payments of 5 percent or greater not later than 1 year from the date of funding.  See section 408(d)(8)(F) of the tax code:  https://www.law.cornell.edu/uscode/text/26/408
  • Payments to you from the charitable gift annuity will be entirely taxable income because the QCDs that fund the charitable gift annuity are not permitted to be treated as investment in the contract.)

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