Boost Your Retirement Income and Make a Difference
The first day of January ushered in not just a new year but a slew of new retirement laws. Among them was one that could transform the way you give.
If you’re 70½ or older, you may now use your IRA to boost your retirement income and make a difference at Memorial Sloan Kettering Cancer Center (MSK). How? By using your IRA to fund a charitable gift annuity—the gift that pays you.
Thanks to the new law, you can fund a gift annuity with a one-time lifetime election of up to $53,000 from your IRA. Among the ways you benefit:
- You avoid the tax hit that comes when you make a typical withdrawal from your IRA.
- If you are required to take minimum distributions, you can satisfy all or part of that obligation for the year.
- You (and your spouse, if you choose) receive income for life in the form of reliable payments.
- The amount of those payments is fixed, regardless of the stock market, or inflation.
- After your lifetime, the remaining balance becomes your legacy at.
If that wasn’t enough, consider this: Gift annuity payout rates are now higher than they have been in more than a decade.
How You Could Benefit: An Illustration
Barbara, 72, has been giving through her IRA for several years. She wants to increase her giving but is also concerned about retirement income. She makes a one-time election and transfers $25,000 directly from her IRA in exchange for a charitable gift annuity. She will receive annual payments of $1,650, a rate of 6.6%.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
We’d Love to Hear From You
Now is the time to take advantage of this new way to fund a gift annuity while benefiting from high payout rates. Limitations apply to this new option, so contact the Office of Gift Planning at (800) 688-1827 or giftplanning@mskcc.org to get a personalized sample and discuss how we can help you take the next step.
California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
