“MDIBL has always had a special place in our hearts. But being able to give a charitable gift through our IRA allows us to make a more impactful gift and reduce our taxable income.”
– Dr. Edward J. Benz, Jr. and Dr. Margaret A. Vettese
Many of us have sacrificed to accumulate retirement savings in expectation of a long and comfortable retirement. Those same frugal habits often result in not using all the money we’ve saved. Most retirement plans are highly taxed – income and possibly estate tax – when transferred to others. That’s why, from a tax perspective, the best MDIBL legacy gift is often from a retirement plan.
Why a Beneficiary Designation?
With a simple update to your retirement beneficiary form (often available online), you can designate MDIBL as a beneficiary of a percentage or dollar amount of your retirement assets. With this gift you can:
• Leave other, less heavily taxed assets to your loved ones
• Maintain maximum flexibility and change your beneficiaries at any time
• Take action without the expense of an attorney – simply request a change of beneficiary form from your plan provider
Did you know that new tax rules for charitable giving were included in the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act?
While everyone’s financial and tax circumstances vary, here are a few updates that may be important for you to consider:
· You may deduct gifts of cash to most non-profits to offset as much as 100% of your income.
· Unused cash contribution deductions (over 100% of your income) may be carried forward for up to 5 years.
· If you don’t itemize, you may reduce your taxable income by $300 for your charitable contributions in 2020.
· Required minimum distributions from retirement plans are waived for 2020, but qualified charitable distributions from retirement funds are still a great way if you are 70½ or older to make contributions.