Retirement Accounts/IRA Designations
Donations of retirement account assets are excellent ways in which you can make a gift to the Foundation. As a non-profit, we are not taxed upon receipt of an IRA or other retirement plan assets.
What to do next:
• Contact the administrator of your IRA or retirement plan to request a change-of-beneficiary form.
• Name The Lustgarten Foundation as a beneficiary and return the updated form to your plan administrator.
• Contact our office for information and to notify us of your intentions.
The American Taxpayer Relief Act of 2012, passed on January 2, 2013, extended a provision that allows IRA account owners to donate their IRA withdrawals to charity through tax years 2012 and 2013. Transferring an IRA distribution to a charity allows retirees to avoid paying income tax on the amount withdrawn, and these qualified charitable distributions can be used to satisfy IRA required minimum distributions. Qualifying distributions may be made by individuals age 70 ½ and older in amounts of up to $100,000 per year. Retirement savers are required to begin withdrawing money from their IRAs after age 70 ½, and must generally pay income tax on the amount withdrawn. However, this provision of the law allows retirees to instead redirect their required distribution, up to $100,000, to a charity, with no income tax due on the withdrawal.
While the IRA money distributed to The Lustgarten Foundation is not taxable, no additional tax deduction can be claimed for the charitable contribution. Distributions made directly from an IRA to a charity at any time in calendar year 2013 can be used to satisfy your 2013 required minimum distribution and to reduce your income tax bill.
What to do next:
• Contact your financial institution for the forms needed to make the donation.
• Contact our office for a sample letter to use for this gift and to notify us of your intention.