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Unlock the power of your IRA

On Dec. 18, 2015, Congress passed and President Obama signed the “Protecting Americans from Tax Hikes (PATH) Act of 2015,” which made permanent various business and individual tax deductions, credits and incentives. A key part of this legislation for Wichita State University and our donors is that the IRA charitable rollover was reinstated.

With this legislation, there are two ways you can use your Individual Retirement Account to make gifts to support the students, faculty and programs of Wichita State.

Making IRA gifts now

“The IRA charitable rollover provided us with a convenient and tax-advantaged way to support our scholarship funds. This opens the door for many to make a meaningful gift.”
— Jim and Barb Stucky

The IRA charitable rollover legislation allows you to make gifts of up to $100,000 from your IRA to the WSU Foundation without undesirable tax effects. When this gift technique was available in the past, many WSU alumni and friends made gifts to support student scholarships and fellowships in nearly every academic college, for Shocker athletics and for the WSU Alumni Association.

You may contribute funds this way if:

  • You are 70½ or older at the time of the gift.

  • You transfer up to $100,000 from your IRA. This opportunity applies only to IRAs and not other types of retirement plans.

  • You transfer the funds directly to 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 meet your minimum required distribution.

  3. You may transfer up to $100,000, 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 experience the impact of your gift to benefit WSU now.

For more information, see this article on our gift planning website: http://plannedgiving.wichita.edu/rollover-now-permanent.

“I have been pleased to use the IRA charitable rollover provision for the past two years. It has given me the ability to make significant contributions to WSU, while having the flexibility to create a tax advantage.”
— Roger McClure

Making IRA gifts later

Qualified retirement plans receive favorable income tax treatment during your lifetime. No federal income tax is owed on the funds as they are contributed, and no federal income tax is owed on the earnings and appreciation while in the plan. You pay taxes on the funds only when you withdraw them. If your estate is worth more than the current estate tax exemption amount, the balance left in your qualified retirement plan, however, is subject to federal estate taxes when you die. And giving the account balance to individual heirs exposes them to federal income taxes up to 39.6 percent on the funds. Your IRA can be seriously depleted by this double taxation.

If you've thought about supporting WSU, consider giving IRA assets to us and giving other assets that are not as heavily taxed to family members. As a nonprofit organization, we are tax-exempt, so we can use 100 percent of your retirement plan assets. Upon death, your account can pass directly to us as a full or partial beneficiary.

Making an IRA gift now or later is simple to do. Just contact your IRA administrator to request the forms to make a charitable transfer (to make a gift now) and/or a beneficiary designation (to make a gift later). The tax identification number for the WSU Foundation is 48-6121167 and our mailing address is 1845 Fairmount St., Wichita, KS 67260-0002. When you initiate either of these IRA gifts, please let us know so that we can watch for your gift and direct it to the WSU program of your choice.

 

Ask us for more details

If you are interested in making a gift to support the people and programs of WSU using your IRA or another estate planning technique, please contact us.

J. Michael Lamb
J. Michael Lamb '80, EMBA, CFRE
Vice President for Planned Giving
316-978-3809 or mike.lamb@wichita.edu
  Darin Kater
Darin Kater, MS
Sr. Director of Development for Planned Giving
316-978-3887 or darin.kater@wichita.edu

 

 

This information should not be considered legal or tax advice. For counsel about your situation, contact your professional advisors.