IRA with No Charitable Planning
Fair Market Value of IRA (to Age 84): $ 2,543,377
Cumulative RMD amounts (by Age 84): $1,766,764
Cumulative Taxes paid due to RMD amounts (by Age 84): $. 618,367
IRA with Charitable Planning
Charitable Beneficiary Designation Value at age 84 = $2,543,377
Cumulative value of gifts (QCD’s) of RMD amounts = $1,766,767
Taxes paid due to IRA over time = Zero
In my previous post we took a look at gift planning options for a 65 year old couple anticipating their retirement years and considering charitable gift planning possibilities with their large IRA nest egg. Why wouldn't they want to turn almost all of that asset into a substantial charitable gift, and still retain flexibility and access to that nest egg throughout their lives? Please be in touch if you have any questions or comments about this scenario.
Disclaimer: No legal or tax advice intended. Please consult with your own legal and/or tax advisor about the impact of charitable gift decisions.
A Groton and Wesleyan grad, Pete flew helicopters on active duty in the Navy for six years before embarking on a career in charitable gift planning that has since spanned three decades. As the Gift Planning Director for Groton School, University of Hartford, Virginia Tech, and The Cooper Union from 1994-2018, Pete proposed, negotiated, consulted, or closed on more than $147 million of planned gifts from wealthy individuals. Pete now runs his own consulting practice and enjoys serving small non-profits, connecting them to wealthy prospects in ways they never could before.
A veteran-owned small business that seeks to serve nonprofits of all kinds, and especially those that have limited access to experienced, full-time development staff dedicated to fostering individual donor relationships.
Founder, Peter H. Congleton