A gift of retirement assets, such as a direct distribution from your IRA, or naming the Foundation as the beneficiary of your 401k, 403b, pension, or another tax-deferred plan, is an excellent way to make a gift. Federal law allows a taxpayer 701/2 years old and older to make a tax neutral distribution from an IRA. You may give up to $100,000 per year. In addition, your spouse may also give $100,000 per year, if he or she also has an IRA with sufficient funds. You may give a qualified charitable distribution (the term used in the law) from your IRA directly to the Foundation but it may not be used to fund a philanthropic fund, charitable remainder trust or charitable gift annuity. You can earmark the gift toward a specific use within the Foundation such as making a gift to the Annual Campaign, creating a PACE or LOJE fund to endow your annual campaign gift, or creating a special endowment fund to support a focused area of interest to you in the Jewish community. In the past, a cash withdrawal from your IRA, whether you gave it to charity or not, would be taxed to you as ordinary income, regardless of the charitable deduction. Under this new law, a contribution from your IRA is excluded from federal income tax. Although the gift is not eligible for an income tax charitable deduction, making a gift from your IRA will not impact the tax benefits of gifts you make to charity from other sources. The Foundation would be pleased to provide you with a sample letter you can use to direct that a distribution be made from your IRA to the Foundation.
For more information about matching your financial and philanthropic goals, call Lisa Long at 330.746.3250 ext. 175 or email her at [email protected] or contact your personal financial advisor today.