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New tax law allows unique option for giving—The Charitable Rollover Gift Annuity Plan

A new tax law allows donors over 70½ to make a charitable contribution to Benedictine Foundation-Rochester/Byron from their IRA accounts and receive a lifetime of payments in return. The Charitable Rollover Gift Annuity Plan combines a charitable gift annuity and a qualified charitable distribution from an IRA. Here’s how it works:

A charitable gift annuity is a simple contract between you and Benedictine Foundation-Rochester/Byron promising to pay you a fixed amount of money each year for life. The amount paid to you will depend upon your age at the time of your gift and does not change for the rest of your lifetime.

A qualified charitable distribution is a contribution from your IRA to Benedictine Foundation-Rochester/Byron. You can make a qualified charitable distribution if you are at least age 70½. Unlike most distributions from your retirement account, you pay no income tax on a qualified charitable distribution.

Under the new law, donors can now make a qualified charitable distribution in exchange for a charitable gift annuity. There are some rules and limitations. You can do it only once and there is a limit of $50,000. The entire payment you receive from your charitable gift annuity will be subject to income tax. There is no income tax deduction for your contribution (although there is no tax on your qualified charitable distribution either).

For more information on The Charitable Rollover Gift Annuity Plan, please contact Benedictine Foundation-Rochester/Byron director Jordan Broers at (507) 206-2219. He would be happy to work with you and your advisors to help determine how this new option might work for you.