Planning Ahead
Deborah Miller, JD, Director of Planned Giving, West Virginia University Foundation, Inc.
Many who
have planned
wisely for
retirement
by putting
money into
IRA accounts
now find that the required annual
distributions are funds they do not
really need after all. However, they
must withdraw a certain amount or
face a 50% federal tax penalty.
An alternative to paying the
taxes is available. Federal law
currently permits anyone age 70
½ or older to make tax-free gifts
from IRAs to their favorite 501 (c)
(3) charitable organizations during
2013.
Gifts up to $100,000 can be
made by having the IRA manager
transfer the funds directly to
the nonprofit organization
(private foundations, supporting
organizations and donor advised
accounts are excluded).
No personal benefit from the
transferred amount is permitted.
An IRA gift counts toward the
required minimum distribution
for the year and doesn’t impact or
lessen the deductibility of any other
charitable gifts made in 2013.
While regular IRA distributions
are subject to federal and state
income taxes, the charitable
amounts escape federal taxes
and most states, including West
Virginia, also exempt the gift from
taxes.
If you do not have an IRA, it
may be worthwhile to roll-over
other tax-deferred retirement
account funds into a newly
established IRA to make such
charitable gifts.
Your hard-earned IRA funds
can be a tax-free way to help your
community and favorite nonprofits,
including WVU and the West
Virginia Farm Bureau.
That’s good planning.
OFF
UP
TO
MSRP
Greenbrier Motor Company
111 Seneca Trail, Lewisburg, WV 24901
(800) 654-6338
www.greenbriermotors.com
West Virginia Farm Bureau News 13