Give an IRA
Making a bequest of a traditional IRA to charity has many advantages. For example, this type of donation increases the amount available to charity and to children or other beneficiaries of your estate. This type of gift allows your heirs to avoid estate and income tax. This can result in significant tax savings depending on the size of your estate and the amount of income to be reported on the final income tax return.
- Avoid paying taxes.
- Increase your legacy for heirs.
- Increase amounts available for charity.
Donating a traditional IRA involves a few simple steps
- Make a charitable gift of the IRA to Mennonite Foundation, an affiliate of Everence. Your local Everence charitable services representative will help you divide your gift among as many charities as you like and divide the income among as many beneficiaries as you like.
- You may also want to purchase a life insurance policy to magnify the power of the IRA and diminish the effects of taxation. Donors over age 70 1/2 years of age are required to take a minimum distribution of the IRA each year, so a portion of that distribution can be used to pay premiums. The beneficiaries, through an irrevocable life insurance trust, are the owners of the policy.
- Upon the second spouse’s death, benefits of the insurance policy are paid to the beneficiaries and the entire IRA balance goes to named charities tax-free.