Ask an Expert

What is your title?
Senior Director of Gift Planning

How long have you been at Tulane?
I attended Tulane Law School from 2012-2015 and have been employed in the gift planning office since 2016. 

What is your role in gift planning? 
I have the privilege of assisting those who want to support Tulane through their generous philanthropy. My role is to find the most advantageous way for donors to make their gifts. I often say that I find the “how” to make a gift happen. 

What is a Legacy IRA?
As of January 2023, a donor who is at least 70 ½ , can make a tax-free Qualified Charitable Distribution (QCD) from their IRA in exchange for a life income gift. A donor can only take advantage of this opportunity in one tax year during their lifetime.

How much can a donor contribute to the Legacy IRA?
A single donor can contribute up to $50,000 and all of it must be given in one tax year. A couple can contribute up to $100,000, in one tax year, if both spouses contribute and both spouses are at least 70 1/2. 

What are the tax implications of a Legacy IRA?
A donor will not receive a tax deduction for their IRA contribution, like in a traditional CGA, as the donor was never taxed on the funds used to establish the CGA. They will be taxed on the CGA payments as ordinary income. 

Do both spouses have to be 70 ½ to be beneficiaries of the Legacy IRA?
The donating spouse must be at least 70 ½ to establish the IRA, but the donor can include their spouse s a beneficiary that is under 70 ½, as long as the payouts are at least 5%. 

Can a donor fund a deferred or flexible CGA with their QCD?
No, the legislation that allows for the Legacy IRA does not allow of deferred or flexible CGAs to be established with the QCD.

How does funding a Legacy IRA benefit the donor?
We have seen that this giving vehicle has been popular with donors who do not itemize their deductions, and those who do not want or need their required minimum distribution from their IRA, potentially keeping them in a lower tax bracket. 

Can a Legacy IRA at Tulane support a specific program or research area of interest to the donor?
Yes, the remainder interest of the CGA may be directed to a specific purpose within the university. As the remainder interest will likely be below endowment minimums at Tulane, a donor might consider pairing the CGA with an additional gift in life to establish an endowment or a bequest to be able to further support the donors area of interest. 

Why is now such a good time to invest in a Legacy IRA at Tulane?
CGA rates are up and as donors live longer, CGAs are becoming more and more vital to the philanthropic donors estate planning process. The Legacy IRA is just another tool to help those who are charitable to be able to give back in ways that are most advantageous to their personal financial goals. 

What should a donor do if they’re interested in investing in a Legacy IRA at Tulane?
Please contact the Tulane Office of Gift Planning via email at giftplanning@tulane.edu or by phone at 1-800-999-0181.

Finally, what is your favorite aspect of working at Tulane?
I enjoy the relationships that I have been able to forge with Tulanians all over the country. Being able to assist others with giving back has been the joy of my life for over 7 years now. Tulane is a wonderful place to make a career and to help others invest in the future.