Create a Legacy IRA
- Gifts made now from your IRA
- Tax implications
- Gifts from your IRA later
- Tax implications for IRA gifts after your death
Congress recently extended the IRA Charitable Rollover for 2013 which allows you to make tax-free distributions from your IRA to the St. Bernards Development Foundation. If you are age 70 1/2 or older, you may make charitable gifts, up to $100,000 directly to charity until December 31, 2013. Charitable gifts from your IRA qualify for your IRA required minimum distribution and are not taxable to you.
Now is an ideal time for you to consider the following gift options:
- St. Bernards Annual Campaign (2013 and beyond)
- St. Bernards Annual Campaign Endowments
- Designated gifts today (i.e. Senior Services, Women & Children, Heart Care, Hospice, Hospice House, St. Bernards Villa Memory Care, etc.)
- Designated gift Endowments
Many other needs exist so contact us to discuss needs, giving opportunities, estate planning and more.Qualified distributions from your IRA may not be made to a donor-advised fund, supporting foundation or private foundation.
If you make a 2013 distribution from your IRA to a qualified charity, you will save income taxes on distributions made directly to a qualified charity, such as St. Bernards. The distribution will count toward your minimum distribution requirement but you will not receive a charitable deduction for the amount distributed. Additionally, making that gift from your IRA during your lifetime has the added benefit of removing that asset from your estate, possibly saving estate taxes.
To arrange for a distribution, contact your plan administrator and let them know that you would like to make a qualified charitable gift from your IRA to St. Bernards Development Foundation. Download the form here.
It is easy to leave your legacy to St. Bernards with your IRA. The simplest way to gift your IRA upon your death is with a beneficiary designation form. Contact your IRA plan administrator for a beneficiary designation form (or use this form) and let them know you would like to name the St. Bernards Development Foundation, Inc. as a primary beneficiary.
If you choose to make a charitable distribution upon your death from your IRA, you will be saving both income and estate taxes. Currently, retirement plan assets are subject to income and estate taxes upon death. This means that if your estate is greater than the estate tax exemption amount, currently $5 million, up to 70% of your IRA or other retirement plan assets may go to the IRS upon your death. Therefore, only a small portion of your IRA funds will pass to your heirs.
Through careful planning, there is a way to minimize estate and income taxes on IRAs. Contact us for additional information – firstname.lastname@example.org or 870-207-2500 or contact your professional advisor.
This is for information purposes only and is not meant to be a substitute for legal or financial advice. Please consult your professional adviser regarding your individual situation