Legacy IRA Act

Legacy IRA Act — Expanded Charitable Giving from IRAs

The Legacy IRA Act (a provision enacted as part of federal retirement legislation at the end of 2022) strengthened the IRA charitable rollover by allowing individuals age 70½ and older to make qualified charitable distributions (QCDs) directly from an IRA to support charities while reducing taxable income. In addition to traditional QCDs, the law enables donors to fund certain life-income gifts (such as charitable gift annuities or charitable remainder trusts) with a one-time QCD in the same year.

Under current law, the annual QCD limit is indexed for inflation — roughly $108,000 in 2026 — and donors may additionally make a one-time QCD of up to roughly $54,000 to establish qualifying life-income vehicles. QCDs continue to count toward required minimum distributions and remain one of the most tax-efficient ways for older donors to support charities, especially in a tax environment where changes to itemized deductions may reduce traditional incentives.

Why this matters for fundraisers:

• QCDs remain a powerful tool for donor engagement, especially for older supporters
• Life-income gifts funded via QCDs open new planned giving opportunities
• Indexing of limits means charitable assets flowing to nonprofits can grow over time with inflation

Looking at the Legacy IRA Act 18 Months Later and How to Grow Giving from Older Donors

Watch the recording of this webinar to learn more about the Legacy IRA Act.