The Pentera Blog
Whitepaper: New Omnibus Bill Allows Donors to Treat IRA Transfers to Life-Income Plans as QCDs
For many years, the charitable community has sought legislation that would treat a transfer from an IRA for a life-income plan (gift annuity, charitable remainder annuity trust, and charitable remainder unitrust) as a qualified charitable distribution (QCD). We are pleased to report that the Consolidated Appropriations Act of 2023, also known as the omnibus bill, which was recently passed by Congress and signed by the President, contains such a provision.
This came about because legislation known as the SECURE 2.0 Act, which contains numerous provisions related to retirement plans, was included in the omnibus bill. One of those provisions amended IRC Sec. 408(d)(8) to expand QCDs to include transfers from an IRA for gift annuities, charitable remainder annuity trusts, and charitable remainder unitrusts (commonly called “life-income plans”) subject to certain requirements and limitations.
A recently released Pentera whitepaper responds to frequently asked questions about the new legislation, including:
- Why is the expanded charitable IRA likely to increase the number of charitable gifts made with IRA assets?
- Who is eligible to transfer IRA assets for a life-income plan?
- How often can a person transfer IRA funds for a life-income plan that qualifies as a QCD?
- What is the maximum amount of IRA assets that can be transferred for a life-income plan during the year that the donor elects the transfer?
In addition to answering these and other questions, the whitepaper also suggests how nonprofit organizations can leverage the new legislation to make an IRA gift more attractive to a broader base of their potential donors.
To request your copy of this new Pentera whitepaper, follow this link.
