Legacy IRA Act Becomes Law

Congress recently passed legislation which took effect on Jan. 1, 2023, creating a new charitable gift planning opportunity and an exciting benefit to our donors allowing them to support and continue the mission of the Sisters of Providence as well as receive additional income.

The Legacy IRA Act authorizes tax-free individual retirement account rollovers for gifts that provide an enormous benefit to charities AND provide taxable retirement income for donors.

For a limited time, donors age 70-and-a-half or older can choose to use IRA funds (a Qualified Charitable Distribution) to create a one or two life charitable gift annuity; up to $50,000. The mandatory age at which any distribution from an IRA must begin has increased to age 73.

However, those age 70-and-a-half to 73 are still allowed to begin using a distribution for charitable purposes.

By allowing donors to use their IRAs to fund a gift annuity, this legislation provides those who have planned well for retirement with additional giving options. Don’t pass up this chance to make a difference and leave a legacy.

For additional information, contact me at cpritchett@spsmw.org or 812-535-2807.