TH E
JANUARY 2023
Blitz
Information on Tax and Estate Planning from the Masonic Charities of the Grand Lodge of Pennsylvania
annuity for himself). That means they would get $2,750 per year until the death of the surviving spouse, at which time the remaining funds in the annuity would go to the Masonic Charities. The annuity distributions would be fully taxable when received each year, since John never paid taxes on the money used to fund the annuity. Still, this is a sweet deal for John and Jill and the Masonic Charities.
IRA OWNER ALERT!
New Legislation Allows Funding an Annuity with Your IRA Gift planners like me were caught off guard in December by a provision for IRA owners left in the 2022 Omnibus Bill. Effective Jan. 1, 2023, if you own a traditional IRA and are 70 ½ or older, you can take a one-time withdrawal of up to $50,000 to fund a charitable gift annuity (CGA) with your favorite charity (this is also available for funding a charitable remainder trust, but the amount is so small, I doubt you will see these types of transactions) for you or you and your spouse. WOW! That’s a generous gift for IRA owners AND your favorite charity (which I hope is the Masonic Charities). Let’s see how it works. John is age 78, and his wife, Jill, is age 77. John has an IRA worth $500,000 and has a required minimum distribution (RMD) for 2023 of $10,000. In the past, John could direct that $10,000 to Masonic Charities as a qualified charitable distribution (QCD) and not pay taxes on the distribution. John can still do that in 2023, but now, John has another choice with his IRA. He can now give that $10,000 RMD and up to $40,000 more from his IRA TAX-FREE to fund a CGA. The annuity rate is 5.5% based on his and Jill’s ages (it would be 6.5% if he just did the
If you are interested in finding out what your personal rate is to fund such an annuity from your IRA, please email me or call my office at 1-800-599-6454 and say, “I want a personal illustration for an annuity funded with my IRA." We will get back to you and go over the particulars for setting up the annuity.
It's the End of the Road After 22 years of working for the Masonic Charities, I will be retiring on June 30, 2023. This was not an easy decision, since I enjoy meeting many of you at various luncheons, receptions, workshops and in your homes. BUT I am no spring chicken. I turn 67 in February and believe it is time to enjoy some quality time with my family and friends. So, I welcome you to either attend one of my Farewell Tour Luncheons (you might even get a goodbye prize) or Receptions at the Masonic Villages, so we can connect one last time. For those of you who have been holding off talking to me about your estate plan to help the Masonic Charities and your heirs, I would love the opportunity to work with you to establish a meaningful legacy before I retire. Call or email me so we can schedule some time to discuss your needs. While I am looking forward to getting out my fishing rods and dusting off my golf clubs, I sure will miss seeing all your smiling faces.
Cheers!