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Retirement Assets – an Overlooked Charitable Gifting Vehicle

If you have reached the age where you must take a distribution from your IRA or retirement vehicle, did you know that you have the option to gift all or part of that annual distribution to the charity of your choice? This is call a Qualified Charitable Distribution (QCD) which is a direct transfer of funds from your IRA, payable to the qualified charity. QCDs can be counted toward satisfying your required minimum distributions (RMD) for the year. Unlike regular withdrawals from your IRA, QCDs exclude the amount donated from taxable income, which can reduce the impact to certain tax credits and deductions. Interested in a QCD for 2020 towards your current RMD? Funds must come out of your IRA and directed to charity no later than December 31, 2020. It’s easy to do-just fill out a designated beneficiary form through your plan administrator or speak with your financial advisor. Your gift goes straight to your charity of choice and you can know you are doing good in the world with these assets. The Willmar Area Community Foundation (WACF) and the Willmar Area Women’s Fund qualify for a QCD distribution.

Also, if you are age 70 ½ or older, you can gift up to $100,000 per year directly from your IRA to any designated charity, including the Willmar Area Women’s Fund at the WACF. Your financial advisor can assist you in determining if this strategy is a good one for you to consider and help you designate the charity as a beneficiary. Once the designated beneficiary forms are in place, the retirement assets will be directed to your beneficiaries without going through probate. By using your pre-tax IRA assets, your charitable gifts cost you less, you can avoid paying income taxes on the distribution and you can continue to support causes you care about.

For more information about how to direct an IRA gift or make a planned gift to the Willmar Area Women’s Fund or WACF, please contact our Executive Director, Sara Carlson, at 320-235-4380 or

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