Your IRA and St. George’s – A Good Match!

An Individual Retirement Account (IRA) is a wonderfully effective vehicle to save for your retirement and make meaningful contributions to the organizations you care about. As you’re probably aware, withdrawals from your IRA are subject to substantial income taxes and, if you are 73 or older, you are required to make taxable withdrawals each year, whether or not you need the income. However, you can avoid some of this tax burden by making a tax-wise charitable gift to St. George’s from your IRA. Here are three opportunities:

Qualified Charitable Distribution (QCD)

If you are at least age 70½, you can make a tax-free Qualified Charitable Distribution (QCD) contribution to St. George’s. Although there is no charitable deduction for your QCD contribution, avoiding income tax on the withdrawal provides a similar tax result. This is especially advantageous if, like most taxpayers, you no longer itemize your income tax deductions.

If you are age 73 or older you must withdraw a certain amount from your IRA each year and these Required Minimum Distributions (RMD) are fully taxable. However, your QCD contribution will count toward your RMD without any income tax.

Qualified Charitable Distribution with Gift Annuity

A new law allows donors over 70½ to make a QCD contribution and receive a lifetime of payments in return by combining a Charitable Gift Annuity (CGA) with a QCD. A Charitable Gift Annuity is a simple contract between you and St. George’s promising to pay you a fixed amount of money each year for life. The amount we can promise to pay depends upon your age at the time of your gift and does not change for the rest of your lifetime.

You are allowed to make a QCD for CGA exchange only once in your lifetime and there are some other limitations which we would be happy to discuss with you.

Beneficiary Designation

If you are considering a legacy gift, designating St. George’s as a beneficiary of your IRA or other qualified retirement plan can provide tax savings for your heirs. If you leave your IRA to your heirs, they will pay income tax – at their own personal rates – whenever they withdraw the money. Directing your IRA to St. George’s and leaving other untaxed assets to your heirs instead is a way to pass some tax savings on to the next generation.

We’d be happy to discuss these charitable opportunities which allow you to support St. George’s while fulfilling your charitable and financial goals.