Rebecca Gilliam, Wayne County Foundation Executive Director

Are you overwhelmed by changes and requirements that impact your retirement savings? Here are a couple of opportunities for you to maximize your IRA.

Giving to charity may be one of the best ways to use your IRA Required Minimum Distribution (RMD). This approach can reduce your tax liability while ensuring your favorite charity receives an annual gift to help it meet its mission. Annually, IRA owners have the ability to make gifts through a Qualified Charitable Distribution (QCD) up to $100,000 a year directly to charities of their choice.  We recommend you contact your tax professional to discuss your specific tax situation and how to maximize your gifts to charity.

New this year, the Secure Act 2.0. Qualified Charitable Contributions (QCDs) can be used, one-time, to create a Charitable Gift Annuity (CGA) or Charitable Remainer Trust (CRT). There is a $50,000 maximum per individual IRA owner. If you would like to learn more, please call us at 765-962-1638.

Are you thinking about how to handle the remainder of your IRA in your estate? Naming a CRT as the beneficiary of your IRA may help stretch income distributions to individual beneficiaries for life or a term up to 20- years. At the end of the term, or life of the beneficiary, the balance of the assets goes to charity.

Mary and George Schmid, long-time supporters of Richmond Civic Theatre, Cope Environmental Center, Morrisson-Reeves Library, and the Richmond Art Museum, wanted to ensure Funds were established at the Foundation for ongoing support for each of these nonprofit organizations. Using Charitable Gift Annuities, each received income from the gift during their lifetime and upon death, the remainder created the Funds for ongoing support.

Including a charitable giving plan in your estate is an important tool to ensure your nonprofit organizations receive continued support after death. I am happy to talk with individuals that have an interest in learning more about these tools that may maximize your IRA and provide support to your favorite charitable organizations. We recommend you contact your tax professional to discuss your specific tax situation.