Gift Planning

NEW LAW: No Required Minimum Distributions in 2020!

As a part of the CARES Act, Congress has temporarily eliminated most required minimum distributions (“RMD”) from retirement plans during 2020. Check with your financial advisor to see how this might affect you. Even without an RMD, a QCD remains a great way to make tax advantageous contributions. Learn more about the CARES Act


Inspiring Stories 2A gift of retirement plan assets can be a surprisingly easy way to reduce potentially burdensome taxes and provide support to Pine Street Inn.

A gift of retirement plan assets could be right for you if you:

  • Have an IRA or qualified retirement plan, such as a 401(k) or 403(b).
  • Do not expect to use all of your retirement plan assets during your lifetime.
  • Have other assets, such as securities and real estate, that you can to pass to heirs.
  • May want to provide payments to loved ones after you are gone.
  • Would like to make a larger gift to Pine Street.

There are three ways to make a gift through your retirement plan:

1: Make a tax-free gift with an IRA charitable rollover 
If you are at least 70 ½ years old, you can make a tax-free gift, of up to $100,000 from your traditional IRA.

2: Designate remaining retirement plan assets for Pine Street Inn
You designate Pine Street Inn on your IRA or qualified plan beneficiary designation form a portion or of what remains in your retirement plan when the plan ends.

3: Designate remaining retirement plan assets for a life income plan
You can also designate that the assets remaining when your retirement plan ends be used to fund a gift arrangement that will make payments to family members or other loved ones for the rest of their lives. 

Next Steps:

EMAIL US »

DOWNLOAD A BROCHURE »

 

Show More Details

Hide Details

Option 1: Make a tax-free gift with an IRA charitable rollover 
You can make a tax-free gift from your traditional IRA. Such a gift is known as a Qualified Charitable Distribution or QCD.  (Other qualified retirement plans such as 401(k)s and 403(b)s are not eligible). You must be at least 70 ½ years old to take advantage of this opportunity. Your QCD must go directly from your IRA administrator to Fenway School of Psychology. The total of all of your QCD gifts in any one year cannot exceed $100,000 per person. A spouse with a separate IRA could also make a QCD of up to $100,000 if they otherwise qualify.

The benefits of an IRA charitable rollover gift include:

  • If you don’t itemize and are not yet required to take your RMD, a QCD offers all of the benefits of an itemized income tax charitable deduction.
  • If you are age 72 and must take your RMD, a QCD can satisfy your RMD without increasing your income taxes.
  • Supports the important work of Pine Street with a tax-free gift.

Option 2: Designate remaining retirement plan assets for Pine Street Inn
Another attractive option is to designate Pine Street as the recipient of some or all of what’s left in your IRA, 401(k), 403(b), or other qualified plan when they end.    

In addition to having the satisfaction of making a significant gift to Pine Street, your benefits include:

  • Your estate is entitled to an unlimited estate tax charitable deduction for the value of your IRA donated to Pine Street if your estate exceeds the applicable exemption.
  • The QCD is an income tax smart gift.  The Secure Act enacted in 2020 limits prohibits stretching out distributions from an inherited IRA over the life of heirs. 
  • Since Pine Street is tax-exempt, a gift to Pine Street from your IRA is not subject to income taxes. 
  • Preservation of non-retirement plan assets for family.

Option 3: Designate remaining retirement plan assets for a life income plan
Alternatively, you can designate that some or all of the assets remaining when your IRA, 401(k), 403(b), or other qualified plan ends be used to fund a charitable remainder trust or gift annuity arrangement that will make payments to family members or other loved ones for the rest of their lives. When the gift arrangement ends, what is left will go to Pine Street.

In addition to having the satisfaction of making a significant gift to Pine Street, your benefits include:

  • A charitable trust or annuity can provide lifetime income for life since that is no longer possible after adoption of the Secure Act.  That law prohibits stretching out distributions from an inherited IRA over the life of heirs.
  • The gift portion of your charitable trust or annuity provides an unlimited estate tax charitable deduction if your estate is subject to estate taxes.
  • Such a plan preserves non-retirement plan assets for family.
     

 

Don’t see what you’re looking for? We're here to help!

 

Pine Street Inn and its staff do not provide legal, tax or financial advice. For such advice, please consult your own professional advisor.