Retirement Assets

A gift from your retirement plan assets can be an easy way to reduce your tax liabilities while providing support to St. Lawrence University.

A gift of retirement plan assets could be right for you if:

  • You have an IRA or other qualified retirement plan, such as a 401(k) or 403(b).
  • You are 70½ or older and want to make tax-free gifts  from your IRA that can help meet your annual Required Minimum Distribution (RMD).
  • You would like to leave a legacy gift to St. Lawrence without revising your will or trust and have your gift made directly from your retirement plan assets.
  • You want to preserve other assets, such as stock and real estate, for your heirs.

Because everyone’s situation is different, we encourage you to seek professional legal, estate planning, and financial advice before deciding on a course of action. This information does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice.

Frequently Asked Questions 

Question: How do I make an IRA QCD gift?

Answer: Contact your IRA administrator by phone, their secure online website or send this sample letter by mail or fax, and indicate that you want to make a Qualified Charitable Distribution (QCD) from your IRA. 

Typically, you will be asked for these pieces of SLU information:

  1. Legal name:  St. Lawrence University
  2. Mailing Address:  St. Lawrence University, Office of Planned Gifts, 23 Romoda Drive, Canton, NY 13617 
  3. Federal Tax Identification Number:  15-0532239
  4. Amount of IRA QCD gift to the University $__________.00 

Your IRA administrator will issue a check to St. Lawrence University indicating it is from your IRA account. The check will then be mailed directly to St. Lawrence’s Office of Planned Gifts which will send you a letter acknowledging receipt of your IRA QCD gift.

In addition to having the satisfaction of making a significant difference at St. Lawrence, your benefits include:

  • Your IRA QCD gift is not subject to income taxes.
  • You can preserve other non-retirement plan assets for your family.

 

More FAQs

Question: What is an “IRA Qualified Charitable Distribution (QCD) gift?

Answer: A QCD is a distribution from an IRA to a charitable organization like St. Lawrence University. Most withdrawals from an IRA are subject to income tax, but a withdrawal for QCD gift is tax free. Individuals age 70½ or older can make QCD gifts from their IRA accounts up to a maximum of $105,000 per year. 

Question: How does my IRA QCD affect my Required Minimum Distribution (RMD)?

Answer: Most taxpayers must begin taking Required Minimum Distributions (RMD) beginning at age 73. RMDs are subject to income tax and there is a significant penalty for failure to take the RMD. Your IRA QCD gift to St. Lawrence University counts toward your RMD without increasing your taxable income.

 

Question: Is my ability to make an IRA QCD gift limited by the amount of income I earn?

Answer: No. Although your income tax charitable deduction is limited to a percentage of income, these limits do not apply to IRA QCD gifts. However, you cannot make more than $105,000 in IRA QCD gifts each year . If you and your spouse both have separate IRAs, you can each make QCD gifts of $105,000 per year.

 

Question: Since I take the standard deduction instead of itemizing, and do not deduct charitable donations, does an IRA QCD gift help?

Answer: Even if you don’t itemize your deductions, an IRA QCD gift offers tax benefits similar to an itemized income tax charitable deduction by eliminating the income tax on the QCD withdrawal from your IRA. And, if you are subject to a Required Minimum Distribution, your IRA QCD gift can help meet your RMD without increasing your income taxes.

 

Question: How can I name St. Lawrence to receive a legacy gift from my IRA or other qualified retirement plan?

Contact your retirement plan administrator by phone or their secure online website and indicate that you want to make SLU the sole or partial beneficiary of assets remaining in your retirement plan account at the end of your lifetime.

Typically, you will be asked for these pieces of SLU information:

Legal name:  St. Lawrence University

Mailing Address:  St. Lawrence University, Office of Planned Gifts, 23 Romoda Drive, Canton, NY 13617 

Federal Tax Identification Number:  15-0532239 

Percentage or a specific amount that will be distributed to SLU as a beneficiary gift when your plan ends.

Under most circumstances, you can make St. Lawrence University the sole or partial beneficiary of your retirement account without changing your other estate plans. Your legacy gift will pass directly to the University, avoid probate, and will not be subject to income taxes.

In addition to having the satisfaction of making an impact at St. Lawrence, your benefits include:

Your estate is entitled to an unlimited estate tax charitable deduction for the value of the retirement plan assets donated to St. Lawrence.

Your gift to the University from your qualified retirement plan is not subject to income taxes.

You can preserve other non-retirement plan assets for your family.

 

Question: At the end of my lifetime, how can I use my IRA or other qualified retirement plan to provide income to my spouse or someone else?

Answer: You can direct the remainder of your IRA or other qualified retirement plan to a testamentary charitable gift annuity or testamentary charitable remainder trust providing income to beneficiaries you choose. At the end of their lifetime(s), your contribution benefits St. Lawrence University. 

 

Question: How does the new “IRA Legacy Act” work?

Answer: If you are age 70½ or older, you can give up to $53,000 from your IRA in exchange for a Charitable Gift Annuity (CGA) that pays a fixed dollar amount to you and/or your spouse for life. You can take advantage of this opportunity only once in your lifetime.