Many donors consider using IRA assets for charitable purposes in their overall financial and estate plans. Leaving your IRA to family may create unintended consequences such as high tax bills, which can reduce the value of your retirement account by 40% or more. For this reason, if you are considering leaving a gift to charity in your estate plan, you may want to consider planning your gift so that you can avoid these and other unnecessary, undesirable tax consequences. To change your IRA beneficiary to a charity like The Montana Land Reliance—in full, or for any percentage of the assets—simply request a new beneficiary designation form from your retirement plan administrator. As a tax-exempt nonprofit organization, we will receive the full value of your gift, and you can change the beneficiary at any time if you or a loved one’s circumstances change.
IRA Rollover Becomes Permanent!
Did you know the Individual Retirement Account (IRA) Charitable Rollover is now permanent? This provision allows donors 72 and older to contribute up to $100,000 annually from an IRA account, without paying federal income tax on the transaction. Donors who do not need their required minimum distribution (RMD) can avoid paying unnecessary taxes by making a charitable contribution directly from their IRA account. Under the newly permanent provision, the contribution can now be considered the donor’s RMD for the year. Gifts must be made directly from the donor’s IRA to qualify. Contact your IRA administrator for more information, visit our website, or give us a call. We are happy to answer any questions you or your plan administrator might have.