Donating part or all of your unused retirement assets, such as your IRA, 401(k), 403(b), pension or other tax-deferred plan, is an excellent way to make a gift to NACADA.
If you are like most people, you probably will not use all of your retirement assets during your lifetime. You can make a gift of your unused retirement assets to help further the NACADA mission. In fact, based on your age, you can make gifts now and/or as a planned gift in the future.
IRA Qualified Charitable Distributions can be donated now…
A SPECIAL OPPORTUNITY FOR THOSE 70½ YEARS OLD AND OLDER
You can give any amount (up to a maximum of $105,000) this year from your IRA directly to a qualified charity such as NACADA without having to pay income taxes on the money. Gifts of any value $105,000 or less are eligible for this benefit and you can feel good knowing that you are making a difference at NACADA. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution, or QCD for short.
WHY CONSIDER THIS GIFT?
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- If you are required to take minimum distributions, you can use your gift to satisfy all or part of your obligation.
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Retirement Plan Assets can be donated in the future…
BENEFITS OF GIFTS OF RETIREMENT ASSETS
- Avoid potential estate tax on retirement assets
- Your heirs would avoid income tax on any retirement assets funded on a pre-tax basis
- Receive potential estate tax savings from an estate tax deduction
HOW TO MAKE A GIFT OF RETIREMENT ASSETS
To leave your retirement assets to NACADA: The Global Community for Academic Advising, you will need to complete a beneficiary designation form provided by your retirement plan custodian. If you designate NACADA as beneficiary, we will benefit from the full value of your gift because your IRA assets will not be taxed at your death. Your estate will benefit from an estate tax charitable deduction for the gift.
MORE ON GIFTS OF RETIREMENT ASSETS
Did you know that 60%-70% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets that receive a step up in basis, such as real estate and stock, and give the retirement assets to NACADA. As a charity, we are not taxed upon receiving an IRA or other retirement plan assets.
CONTACT US
If you have any questions about gifts of retirement assets, please contact us. We would be happy to assist you and answer any questions that you have.
Please let us know if you have already included NACADA as a beneficiary of your retirement assets. We would like to thank you and recognize you for your gift.