Use your IRA to help WSU now and later

Mike Lamb

Mike Lamb, WSU Foundation  vice president for planned giving


An option for giving now

President Obama signed legislation Jan. 2, 2013, which extends through Dec. 31, 2013, the provision that allows individuals aged 70 1/2 or older to make outright (immediate) gifts of up to $100,000 to qualified charitable organizations through direct transfers from their IRAs without paying income tax on the IRA distributions. If you are able to take advantage of this opportunity, you can support the students, faculty and programs in your areas of interest at Wichita State.

   Note: The legislation does not permit direct transfers to charitable trusts, donor advised funds, charitable gift annuities or supporting organizations. In addition, this opportunity applies only to IRAs and not other types of retirement plans. Owners of ineligible plans, such as 401(k)s and Keoghs, however, may have the option to roll over amounts into an IRA and then make an eligible gift from that account.

   You can make a direct transfer if:

  1. You are age 70 1/2 or older on the day of the gift.

  2. You make a qualified charitable distribution of any amount up to $100,000 on or before Dec. 31, 2013, to qualify for 2013.

  3. You transfer funds directly from an IRA.

  4. You transfer the gift outright to one or more qualified charities (which could include the WSU Foundation).

Benefits of an IRA Direct Transfer to the WSU Foundation

  1. The transfer generates neither taxable income nor a tax deduction, so you can benefit even if you do not itemize your tax deductions.

  2. The transfer may satisfy your required minimum distribution.

  3. You may transfer up to $100,000 directly from your IRA, which allows you to make a significant gift and gives you the flexibility to create an improved tax situation.

  4. Along with creating a powerful legacy, you can witness the benefits of your gift to benefit WSU now.

  5. It's simple to do. Just contact your IRA administrator to request the transfer.

An option for giving later

   If you believe that making an outright gift from your IRA isn't right for you, or if you don't qualify under the legislation rules, consider making us beneficiary of your IRA or other retirement assets. In most cases, the government defers tax on the income used to fund your IRA. After your lifetime, the funds in your IRA are subject to income taxes, which can eat up to 39.6 percent of the value of your IRA. Estate taxes could consume even more.

   The good news is that by naming the WSU Foundation as beneficiary of these funds, we, as a charitable organization, are exempt from taxes and will receive the entire amount you designate. Also as a result of the gift, your heirs may inherit more assets and pay less in taxes.

Ask us for more details

   If you are considering making gifts using your IRA, it is advisable to discuss your philanthropic goals with your professional advisor to be certain that this is the best plan for you. In addition, we are available and happy to answer any questions you might have.



   For more information or to answer any questions, contact J. Michael Lamb, ’80, EMBA, CFRE, WSU Foundation vice president for planned giving, at (316) 978-3804 or mike.lamb@wichita.edu.

 
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Wichita State University Foundation


1845 Fairmount St., Wichita, KS 67260-0002
Phone: 316-978-3040 | Fax: 316-978-3277 foundation@wichita.edu

© 2014 Wichita State University Foundation

Wichita State University Foundation is a non-profit 501(c)(3) organization and donations are tax-deductible to the full extent allowed by law.