Retirement Asset Gifts
Qualified Retirement Plans, such as IRAs, offer tax deferred compounding and accumulation, but distributions are taxed to the receiving individual. Retirement assets make smart gifts because if you leave the balance of a retirement fund to your heirs, the funds will be subject to taxation.
Mark’s Qualified Charitable Distribution (QCD)
From an early age, Mark knew he wanted to study law, and one day, become an attorney. As he was applying to college he quickly realized that he would need a lot of financial support to achieve his dream of becoming a lawyer. His high school guidance counselor suggested that Mark attend Phoenix College to take advantage of the affordable tuition, and she encouraged Mark to apply for scholarships. To his surprise, Mark received a scholarship, which paid his tuition, which was tiny compared to today’s standards.
At the time, Mark didn’t fully understand how significant his experience at PC and the scholarship support were. One of Mark’s justice studies faculty at PC recommended Mark for a transfer scholarship, and wrote him a recommendation for law school. Looking back, Mark feels that his success stemmed from his journey, which began at Phoenix College, and the support of amazing faculty. He is passionate about supporting students who struggle to afford college as he did.
Mark reached out to see how he could support PC students. He decided to make an annual gift to PC’s Alumni Association Scholarship, for students who have the desire to attend college, but need financial help. Now that Mark is 71, he can donate up to $100,000 per year from his IRA. This is called a Qualified Charitable Distribution (QCD). Mark realized when he had to take Required Minimum Distributions (RMD) from his IRA, a QCD would allow him to impact more students and ultimately keep more in his pocket.
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