Are Your Ready for IRA QCD Rollovers to CGAs?


Chris McGurn [00:00:05] Hello. Over the next few minutes, we will explore the new funding opportunity for charitable gift annuities.

Chris McGurn [00:00:12] Of course, we're talking about the Secure Act 2.0.

Chris McGurn [00:00:15] Why are we even discussing this at this point? Well, as we know, the charitable gift annuity is a fantastic conversation starter. Although a donor may not end up providing a charitable gift annuity with your organization. It is absolutely a way to engage them in further conversations.

Chris McGurn [00:00:32] The second reason is this is on the donor's advisor's radar. So advisors are out there combing through that Secure Act 2.0, and they have found this gem.

Chris McGurn [00:00:44] One of the provisions is that the annuitants must be the owner of the IRA. Sub part of that is that the spouse can be a second annuitant.

Chris McGurn [00:00:57] So a quick note on identifying your IRA rollover candidates. The easy one is they have to be 70 and a half. So take a look at your database. Anybody who is over 70 and a half can be a candidate.

Chris McGurn [00:01:10] If you've talked with donors or they're sending you QCDs already, they could be a candidate.

Chris McGurn [00:01:18] Maybe someone who had sent a QCD in past years, but now-- but stopped for some reason. You can talk to them. Perhaps it is an income component.

Chris McGurn [00:01:28] And the big thing to remember is you are actually helping out your donors because this counts towards the required minimum distribution.

Chris McGurn [00:01:36] So why prepare now? There's still some process and procedure around this. There are some early adopters. There are gifts that have been made, but there are some process and procedure that you're going to want to work through so that you are prepared for the year end giving. Hope this has been helpful and I look forward to furthering the conversation.