Charitable Gift Annuities

[jimcasada]

Anyone have any experience with charitable gift annuities? This one's with Disabled American Veterans Charitable Service Trust, but I believe there are others. Sounds like this might be a good way to reduce your tax liability on TSP money, via rollover to an IRA. Then, by making a donation from your IRA, you receive an annual return interest payment on your donation every year for the rest of your life.

https://davplanmygift.org/charitable-gift-annuities

[BelieveGod]

I rolled funds over to an IRA from my 401k TSP. I donate to my church by writing a check directly from my IRA account to the church. No tax, I am over 70 1/2. I do not use an annuity or trust. Why would I complicate it? From google, "You can make tax-free charitable gifts from your IRA using a Qualified Charitable Distribution (QCD), available for those 70½ and older, by having funds sent directly from your IRA to a qualified charity (like a church, university, or 501(c)(3)), which counts toward your Required Minimum Distribution (RMD) and isn't included in taxable income. The annual limit is $108,000 (for 2024/2025), with a one-time option to fund a Charitable Gift Annuity or Trust. This is a powerful tax strategy, especially for non-itemizers."

[Bubba]

Anyone have any experience with charitable gift annuities? This one's with Disabled American Veterans Charitable Service Trust, but I believe there are others. Sounds like this might be a good way to reduce your tax liability on TSP money, via rollover to an IRA. Then, by making a donation from your IRA, you receive an annual return interest payment on your donation every year for the rest of your life.

https://davplanmygift.org/charitable-gift-annuities

What a neat idea! I'm going to share this with a relative. She has a school in Sub-Saharan Africa. I doubt she'll have the infrastructure to setup something like this...but very cool either way!

[evilanne]

I didn't know that DAV had a Charitable Gift Annuity but I have heard of others.
I'm not looking for getting anything back with charitable contributions. I just take the itemized tax deduction...you would get another tax document each year to deal with and it is only partially deductible in year of giving because of the pay out.
https://convoyofhope.org/articles/chari ... annuities/
https://www.fidelitycharitable.org/guid ... nuity.html
You cannot do a QCD with TSP but you can with an IRA but only if you are 70.5 or older
If you are under 70.5 you can set up a DAF, Donor Advised Fund with non-retirement funds
https://www.fidelitycharitable.org/guid ... -fund.html
Per AI: You cannot directly fund a donor-advised fund (DAF) with retirement funds. However, you can name a DAF as a beneficiary of your retirement account, allowing the funds to go to the DAF after your death

[jimcasada]

Thanks for all the info. I think that I will most likely go with the Salvation Army's program, but wait until next year when I turn 70 to get the higher return. They are very well established and rank high on the efficiency in how they use their funds compared to most other non-profit organizations.

https://www.salvationarmyusa.org/usa-we ... t-annuity/

[BelieveGod]

"What a neat idea! I'm going to share this with a relative. She has a school in Sub-Saharan Africa. I doubt she'll have the infrastructure to setup something like this...but very cool either way!"

If the school is a 501c, she could transfer funds from 401K to an IRA account and write checks directly to the 501C organization, tax-free, if she is over 70.5 years old. Also, if one has stock or real estate with a small basis; this Works great to donate the actual stock or real estate; then the 501C can sell it.