Kerry HokeIf you haven’t already heard, at the close of 2022 Congress passed and President Biden signed into law retirement plan legislation that expands on the Secure Act of 2019 and brings some improvement to laws on retirement savings accounts. You may be wondering how these changes affect you.
Let me highlight two of the most notable changes:
- Increased Charitable Gift Annuity (CGA) rates as of January 1, 2023 (yet another increase from the July 1, 2022 rate change). Rates increased 0.3 – 0.5% based on annuitant age(s). Please see the following sample rate sheet.
- Once-in-a-lifetime tax-free distribution from your IRA for a gift annuity with the following restrictions:
- Maximum allowable distribution amount of $50,000 in 2023 (although not limited to a single gift)
- Income must be paid to the annuitant and/or to their spouse
- Annuitants must be 70 ½ or older to take advantage of this opportunity
- All payments made to the recipients must be fully taxable (unlike traditional CGAs that include a tax-free portion)
- Payments must begin no later than one year from the date of funding, disqualifying deferred CGAs
I hope this information helps you in all of your charitable giving considerations. As always, the Office of Donor Development recommends consulting with your financial and tax consultants to discuss how these changes specifically affect and/or apply to you and your portfolio.
If you have questions about specific giving opportunities at Messiah Lifeways, please don’t hesitate to contact the Office of Donor Development at 717.795.5579 or development@messiahlifeways.org.
