LEGACY PLANNING SERIES: TRADITIONAL IRA/401k AND QUALIFIED CHARITABLE DISTRIBUTIONS 

Naming the RAF as a full or partial beneficiary of your traditional IRA or 401k can save estate taxes, and tax on the ordinary income. You can even specify a project if you wish!

• The IRA/401k provides an RAF donor a very simple way to make a legacy gift to the RAF. You simply name the RAF a full or partial (fractional) beneficiary, or state a dollar amount of residual benefits in your plan. 
• You may also declare the RAF a “contigent beneficiary.” You may leave your IRA to your spouse or family member, after which the RAF becomes the beneficiary. 
• These gifts can avoid potential double taxes on IRA proceeds – first as part of the estate, then as ordinary income to the beneficiary. The IRA Charitable Rollover allows taxpayers over age 70 1/2 to donate up to $100,000 annually from their IRA without having to first declare the distribution as income. Such distributions count toward the Donor’s Required Minimum Distribution (RMD).
• The Donor may specify a project, or the RAF will simply use it to further the RAF Mission to preserve, improve, and create airstrips for recreational access.

Consult your tax/legacy planner, then contact us for help in considering this way to leave a legacy.  

There are several other ways you can help while preserving your lifestyle. Watch our website to learn about another option next month.

Submitted January 12, 2024.