Qualified Charitable Distributions (QCDs)
Charitable Gift Annuities Through Qualified Charitable Distributions

QUALIFIED CHARITABLE DISTRIBUTIONS (QCDs) are tax-free distributions from your Individual Retirement Account (IRA) to a qualified charity. Due to a recent law change, you can use a QCD to purchase a charitable gift annuity (CGA). A CGA is a contractual agreement between you and the Jewish Federation of Greater Pittsburgh that enables you to receive a guaranteed fixed annuity payment while you (and/or your spouse) are alive, with the remaining assets supporting the community after your death.
How Does It Work?
Beginning in 2023, updates to the SECURE Act allow you to make a one-time transfer up to $50,000 from your IRA to a CGA. You get an income from the annuity and reduce your Required Minimum Distribution (RMD) from your IRA. If you are at least 70½ years old, you are eligible to process a QCD. The payment rate from the annuity (i.e., your guaranteed fixed payment) depends upon your age and the market rates at the time of the gift. The Jewish Community Foundation of the Jewish Federation of Greater Pittsburgh's expert professionals can help to determine if a CGA created via QCD is right for you.
What Are The Benefits?
- The QCD transfer satisfies $50,000 of your RMD but is not considered to be income, therefore is not taxable to you in the year of the transfer.
- A CGA established via QCD will have the effect, on a one-time basis, of spreading the income tax on up to $50,000 of required minimum distributions (RMD) from an IRA over your lifetime.
- Unlike most other charitable contributions, this gift does not require you to itemize your taxes.
- You can provide immediate and guaranteed income for yourself and/or a spouse.
- Payments can be received annually, semiannually, quarterly or monthly.
- Upon your death or that of your designated beneficiary, an unrestricted endowment fund or a Legacy Fund is created in your name at the Foundation.
- You are investing in the future of the Jewish community as the funds continue to support Jewish Pittsburgh after your death.
Jewish Federation of Greater Pittsburgh is not a licensed tax, legal or investment advisor, and this information is not advice. Consult your estate planning professional or accountant for information.
