The Legacy IRA Act took effect in 2023. This new law allows those who are 70 ½ or older to make a one-time distribution of up to $50,000 from an Individual Retirement Account (IRA) to create a charitable gift annuity (CGA) at Yale. Married couples can each make a $50,000 distribution from their respective IRAs, for a total gift of $100,000.

With Yale’s annuity rates at a historic high, those who fund CGAs now will lock in competitive rates. Quarterly payments can begin immediately.

Many people choose charitable gift annuities as a method of securing dependable income while also supporting an area of the university that matters to them. From student scholarships to Yale’s many programs and centers, gifts can benefit any part of Yale and will provide support for years to come.

For example, Jane is 73. She would like to make a significant donation in honor of her upcoming fiftieth reunion and supplement her retirement income. She has an IRA and designates a $50,000 distribution from it to create a CGA at Yale, benefitting her beloved women’s softball team. Jane’s annuity payments are locked in at 6.5 percent*, and she will receive them immediately. Every three months, Jane will receive $812.50 from Yale, for a yearly total of $3,250.00 in secure income. Jane will get these payments for the rest of her life. And the payments can count towards her required minimum distribution (RMD).

Yale has many ways to structure charitable giving and maximize impact both at the university and for the financial futures of its donors. Interested individuals can email development.plannedgiving@yale.edu or call 203.432.7025 to explore these opportunities.

*Rates are for illustration purposes only and will vary depending on the timing of the gift.

This update is provided for informational purposes only and is not intended to provide legal or tax advice. Donors should consult their own tax advisor to determine specific effects given their individual circumstances.