‘Fiscal cliff’ resolution yields great IRA gift opportunity

Mike Lamb

Mike Lamb, WSU Foundation  vice president for planned giving

By Mike Lamb ’80, EMBA, CFRE
WSU Foundation vice president
for planned giving

The American Taxpayer Relief Act (ACTA) was passed by the U.S. Congress on Jan. 1, 2013, and signed into law by President Obama the following day. This partial resolution to the issues of the “fiscal cliff” also included a provision that is favorable for some philanthropic giving.

   Under the provisions of ACTA, anyone who owns an Individual Retirement Account (IRA) and is at least 70½ years old can make tax-neutral charitable distributions of up to $100,000 in calendar year 2013. The qualified charitable distribution(s) can satisfy all or part of your minimum required distribution and must be made directly from your IRA custodian to the charitable organization(s). The qualified charitable distribution is a tax-neutral one, with no tax due on the distribution and no tax deduction provided for the gift.

   In calendar year 2011, 15 friends and alumni of WSU used a similar opportunity to make IRA charitable distribution gifts totaling more than $150,000. Those gifts supported a wide variety of programs, including student scholarships in accounting, engineering, music and nursing, as well as assistance for the restoration of the Miró mosaic at the Ulrich Museum of Art and renovation of the Rhatigan Student Center.

   So that we can direct the gift to your area of interest, please advise staff at the WSU Foundation if you plan on making an IRA qualified charitable distribution to benefit Wichita State.

   For more information on IRA qualified charitable distributions or on other 2013 tax issues, visit our planned giving website at www.wichita.edu/plannedgiving and click on the “Hot Topics” section. If you are interested in ways to include a gift to WSU in your estate plans, please contact me at (316) 978-3804 or mike.lamb@wichita.edu.

    This information is not intended as legal, tax or investment advice. Please contact your professional advisors for counsel regarding your specific situation.

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