Give from Your IRA and Receive a Lifetime of Payments

If you are age 70½ or older, you may use a Qualified Charitable Distribution (QCD) from your IRA to fund a charitable gift annuity (CGA) with HopeHealth creating fixed lifetime payments.

This strategy combines the tax advantages of a QCD with the income benefits of a gift annuity.

How It Works

1. Qualified Charitable Distribution (QCD)

A QCD allows you to transfer funds directly from your IRA to HopeHealth.

• You must be at least 70½.
• The distribution is not included in your taxable income.
• The amount can count toward your Required Minimum Distribution (RMD).
• There is no income tax charitable deduction.

2. Charitable Gift Annuity

In exchange for your gift, HopeHealth agrees to pay you fixed income for life. Payments are backed by the organization’s general resources and do not fluctuate with the market.

Under current law:

• You may use this option once during your lifetime.
• The aggregate limit is $55,000 in 2026.
• All annuity payments are taxable as ordinary income.
• You may include your spouse as a joint annuitant.

Is This Right for You?

This option may appeal to you if:

• You want to satisfy your RMD tax-free.
• You prefer guaranteed lifetime income.
• You want to make a meaningful charitable gift from retirement assets.

Example

Consider Alan, a 75 year old who would like to make a special contribution to support HopeHealth. Alan has substantial assets in his IRA, and he knows that he is facing a RMD this year. Even though he doesn’t really need the income, Alan knows that his RMD is going to increase his income tax. Instead, Alan chooses to make a $55,000 QCD to HopeHealth in exchange for a charitable gift annuity which will pay him $3,710 (7%) per year for the rest of his lifetime. Alan understands that he is allowed to make this election only one time, but he is looking forward to securing a stream of payments for his lifetime while reducing his RMD and making a generous contribution to HopeHealth.

Take the Next Step

This strategy involves specific IRS rules and coordination with your IRA administrator. We would be pleased to work with you and your advisors to determine whether an IRA charitable rollover gift annuity aligns with your retirement and philanthropic goals.