Making a gift from your Individual Retirement Account (IRA) is a great way to support UCS. There are two different ways to donate your retirement assets that can mutually benefit you and our work towards a healthier planet and safer world.
Since 2006, Congress has passed legislation enabling the charitable IRA rollover 6 different times. The IRA rollover allows individuals age 70½ and over to make qualified charitable distributions (QCD) from an IRA. QCDs count towards your required minimum distribution, and are not taxable to you as income. The IRA rollover only applies to traditional and Roth IRAs. If you would like to use your IRA to support UCS in 2015, you have two options:
- Wait and see: Under the Tax Increase Prevention Act of 2014, Congress did not renew the IRA Rollover. If you hold off on taking your required minimum distribution until later in 2015, you may have more flexibility in the event that legislative changes restore the IRA Rollover later this year. However, if you wait too long to take your distribution you run the risk of failing to withdraw the required minimum amount and you may be subject to a 50 percent penalty on the shortfall.
- Make your gift now: You can make contributions as if the law were in effect and proceed to have your distribution go directly from your IRA to UCS. In the event the provision is renewed and made retroactive for all of 2015, you will be able to treat your gift as a QCD. If the legislation is not renewed, or is renewed but not made retroactive for all of 2015, you would simply claim the distribution as income on your tax return and have made a tax-deductible gift to UCS.
If you choose this second option, please remember:
- You must be 70½ or older
- Make your distribution directly from your IRA to UCS
- Direct your gift to the Cambridge address at the bottom on this page
If you are thinking of leaving funds to UCS after your lifetime, retirement plan assets can be a tax-savvy gift, enabling you to give more to charity and your heirs than you might have thought possible. Designating UCS as a beneficiary of your IRA, 401(k), or other retirement account is incredibly easy.
For more information about gifts of retirement plan assets, please contact the Planned Giving Team at (617) 301-8095 or [email protected].