Glossary Term Name
This is a placeholder for glossary term definitions.
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Lifetime Gift from a Retirement Account
(Gift Example)
The first example illustrates an outright gift from an IRA by a donor over age 70½.
The second example illustrates the costs and benefits of a withdrawal from an IRA by a donor younger than 70½, used to fund a life-income gift.
Example 1
You are 75 years old and your adjusted gross income will total $200,000 this year. Earlier in the year you contributed $100,000 to JDRF, so you have reached the limit (50% of adjusted gross income) on charitable gifts you can deduct this year.
You want to provide additional support for a JDRF program, so you direct a $100,000 payment from your IRA to us.
Here is a summary of the costs/benefits of making this gift: |
|
| Donor | Individual, age 75 |
| Withdrawal from IRA | $100,000 |
| Contribution | $100,000 |
| Income tax on withdrawal | $0 |
| Charitable deduction for withdrawal | $0 |
| Previous gift this year | $100,000 |
| Combined gift to us | $200,000 |
| Income tax on combined gift | $0 |
Example 2
You are 65 years old. You withdraw $100,000 from an IRA and use it to create a Charitable Gift Annuity, making lifetime payments to you, then paying the remaining balance to JDRF.
Here is a summary of the costs/benefits of making this gift: |
|
| Donor | Individual, age 65 |
| Withdrawal from IRA | $100,000 |
| Contribution | $100,000 |
| Current from IRA | $3,000 (3%) |
| Annuity payment | $6,000 (6%) |
| Tax-free portion | ($2,949) |
| Tax on IRA withdrawal | $35,000 |
| Charitable deduction | $41,311 |
| Deduction tax savings @ 35% | $14,459 |
| Net tax cost of gift | $20,541 ($35,000 - $14,459) |
| After-tax income from annuity | $4,932 / year |
| Additional annual income | $1,932 ($4,932 - $3,000) |
For more information
Email us, complete the personal illustration form, or call us at 1-877-533-4483 so that we can assist you through every step of the process.
Alan Berkowitz
National Director of Planned Giving
Juvenile Diabetes Research Foundation International
120 Wall Street
New York, NY 10005-4001
1-877-533-4483
plannedgiving@jdrf.org
JDRF recommends that you consult your tax or legal advisors
prior to making a planned gift.
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