Retirement Assets
Gifts from retirement assets may be made while living or as part of a planned estate gift.
Donors who have an Individual Retirement Account (IRA), are age 70 1/2 or older, and are required to take a minimum distribution from their IRA may find that it makes sense to make charitable contributions from their IRA directly to a qualified charity. Called an "charitable rollover" in the Pension Protection Act of 2006 and renewed in the American Taxpayer Relief Act of 2013, the provision allows qualified donors to make an election for this tax-free distribution directly to a qualified charity. The money goes directly to the charity and the donor does not have to pay income tax on the withdrawal. It is not a charitable contribution, however, and cannot be used to fund a life income gift like a charitable gift annuity or donor advised fund. Your IRA custodian should be able to assist you with any additional information you require.
Estate gifts from pension assets are often the gift of choice for savvy donors. While pension assets may pass without penalty to a spouse, at the death of the second spouse, they are taxed heavily. Donors who plan to make an estate gift to a charity, should visit with their pension custodian about the pro's and con's of bequeathing those assets to a charity versus a family member. It is often much more effective from a tax standpoint to make the charitable bequest from the pension and use other assets for family gifts. A simple beneficiary form from your pension custodian will set up the gift in whatever format you choose to make it.
Because we have recently changed our name and because we are affiliated with a national organization, we ask donors and their professional advisors to be certain to include our full legal name in their estate documents. This is information to include:
Cancer Support Community of Greater St. Louis
1058 Old Des Peres Road
St. Louis, MO 63131
For more information, contact Ann Kelly, Development Director, at 314-238-2000 ext. 235 or email akelly@cancersupportstl.org.
This is not intended as legal or financial advice. Please consult your professional advisors.