Tax-free giving from your IRA
A retirement plan, such as an IRA, can be your most significant asset. In addition to providing retirement income, it can be a smart source for charitable giving. Here are two tax-efficient options for making a gift from your IRA during your lifetime or through your estate:
1. QUALIFIED CHARITABLE DISTRIBUTION (QCD)
If you are 70½ years or older, an IRA charitable rollover gift allows you to direct up to $100,000 tax free to the University each year from your traditional IRA, which satisfies your required minimum distribution and reduces your taxable income. Contact your IRA custodian to request a direct distribution to the University.
TIP: Married taxpayers who meet QCD requirements and file joint returns can donate $100,000 from each spouse’s IRA, for a total of $200,000 annually.
2. BENEFICIARY DESIGNATION
You can designate the University as a primary, contingent, or cobeneficiary of your IRA or other retirement plan. You reduce your taxable estate and avoid income tax, while the University receives the full amount of the untaxed gift. Simply request a beneficiary designation form from your plan custodian, insurance agent, or bank branch.