Giving in Retirement
Support students and educational advancement
Required Minimum Distribution
You cannot keep your retirement funds indefinitely. You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 70½. Your required minimum distribution is the minimum amount you must withdraw from your account each year thereafter. You can withdraw more than the minimum required amount.
Enacted legislation now allows you to share your retirement funds with the Bay College Foundation tax-free. Known as the IRA Charitable Rollover, or the Qualified Charitable Distribution, this law is now permanent. You can make annual gifts from your retirement accounts to Bay and avoid taxes you would have paid for such distributions. Students at Bay College will receive the gift of education, making a positive impact on their lives and futures.
What Else You Need to Know
- You must be 70-1/2 or older at the time of the gift.
- You can transfer up to $100,000 directly from your IRA.
- Funds must transfer directly to qualified charities. The legislation does not permit direct transfers to charitable trusts, donor-advised funds, charitable gift annuities or supporting organizations.
- Retirement plans with minimum distribution rules include: Traditional IRAs, SEP IRAs, SIMPLE IRAs; 401(k) plans, 403(b) plans, 457(b) plans, profit sharing plans, other defined contribution plans
Naming a Beneficiary
Also, consider making the Bay College Foundation a beneficiary of your IRA or other retirement account. Naming a charity as beneficiary of all or part of your IRA supports a great cause and avoids taxes to your heirs. Your gift of education will help ensure that Bay College flourishes now and well into the future. If you have questions about Planned Giving or naming the Bay College Foundation in your estate plans, please contact the Foundation office at 906-217-1700.