Designated Gifts from Retirement Funds
The revised IRS tax laws of 2010 provided an opportunity to donors to make charitable gifts to the Foundation directly from their retirement accounts. Donors using this method avoid taxes and can make a larger gift than usual (up to $100,000 per donor) by giving directly from their retirement funds. As gifts to charities from retirement accounts are not taxed, Goodwin House receives the full benefit of the designated gift. Tax laws may change, please consult your tax advisor.
If the gift is given through retirement funds to the charity after the death of the donors, it acts in the same way as a bequest by will. Similar to a bequest through a will, this gift can be set up with a simple change of beneficiary in a donor’s retirement accounts. Retirement funds left to individual beneficiaries after death are taxed at ordinary income rates and may be subject to estate taxes, thus substantially reducing their value. Thus, this is a perfect gift for charities.