| Many individuals have a large portion of their estate in their retirement plan. While these funds can provide additional income during their lifetime, they can also be used to make charitable gifts both now and in the future. For example, if you are 70½ or older, you may want to consider making a gift directly to the Boys and Girls Clubs of East County Foundation (BGCEC Foundation) from your traditional individual retirement account (IRA). Advantages of making your charitable gifts from your IRA • You may generally give any amount up to $108,000 this year directly from your IRA. These gifts are called qualified charitable distributions (QCDs). • These gifts can count toward all or part of your annual required minimum distribution (RMD). While IRA owners age 70½ or older can make gifts directly to charities from their IRAs, RMDs now begin at age 73. • When you give directly from your IRA—rather than withdrawing these funds—you won’t increase your adjusted gross income or subject your Social Security income to more taxes. QCDs are considered “tax-free” gifts! If you find you can continue adding to your IRA after age 70½, the amount of QCD gifts you can make will be reduced. Can I use other retirement plans to make these gifts? • No, the QCD is only possible with a traditional IRA. However, it is possible to roll funds from other retirement plans into your traditional IRA. How else can I give through my retirement plans? Consider making the BGCEC Foundation a beneficiary. • As a charitable organization, we will not have to pay income taxes on the retirement funds when received. If you have heirs, consider providing them with other assets from your estate. We’re here to help. Please consult your advisors, visit our website, or contact us for more information about how you can make your charitable gifts through an IRA. |
| For more information about the Boys and Girls Clubs of East County Foundation, please call 619-440-1600 and ask for our Executive Director, Forrest Higgins. Thank you! |