Retirement Assets

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 llong@jewishyoungstown.org or contact your personal financial advisor today.

DISCLAIMER: This material is presented for informative purposes only and should not be construed as legal, tax or financial advice. When considering gift planning strategies, you should always consult with your own legal, tax and financial advisors. 

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