If you are 70½ or older, you may now use your IRA to boost your retirement income and make a difference at the Smithsonian Institution. How? By using your IRA to fund a charitable gift annuity—the gift that pays you.
You can fund a gift annuity with a one-time 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, interest rates, or inflation.
- After your lifetime, the remaining balance becomes your legacy at the Smithsonian.
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
Mary, 75, 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 $53,000 directly from her IRA in exchange for a charitable gift annuity. She receives annual payments of $3,710 for the rest of her life, reflecting a 7.0% rate, to help support her in her retirement years.
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. Some limitations apply to this new option, so contact the Office of Gift Planning at 888-419-7584 or legacy@si.edu to get a personalized sample and discuss how we can help you take the next step.