Many Americans have tucked away a substantial sum of money in an IRA, 401(k) or other retirement plan. When donors find they don’t need that money to pay living expenses as they age, they may consider gifting a portion to IU School of Medicine to support medical education or research. Many compelling reasons exist to use these funds to make a charitable gift.
Gifts Made in Life
Traditional IRAs are attractive saving tools because they allow a person to squirrel away money for retirement pre-tax. But that also means the money counts as income—and is taxed accordingly—when you begin withdrawing it. Depending on the amount stashed away, that can have a significant impact on income tax.
For people who are philanthropically inclined, a charitable IRA rollover may be an appealing opportunity to support IU School of Medicine and improve a tax situation at the same time.