The minimum age for making a qualified charitable distribution (QCD) from your IRA is 70½, and the annual limit is $100,000. This is an excellent way to show your support for Vermont Academy and receive tax benefits in return. As you plan your required minimum distributions, consider using your IRA account to make the most of your charitable giving. You receive a tax benefit even if you take the standard deduction!
To qualify, you must be 70½ or older at the time of gift; distributions must be made directly from a traditional IRA account by your IRA administrator; and gifts must be outright, meaning they go directly to VA. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities do not qualify, nor do gifts from 401k, 403b, SEP and other plans.
The benefit to you is that these distributions are excluded as gross income for federal income tax purposes on your IRS Form 1040 and the gift counts toward your required minimum distribution for the year in which you made the gift. Plus, you could avoid moving into a higher tax bracket that the distribution might cause.
There are numerous ways to make Vermont Academy part of your legacy. Two of the most common methods are listed below. The Advancement office is also happy to explore giving vehicles with you that provide lifetime income and tax benefits for you and your loved ones.
Bequests are a simple way to support Vermont Academy. Just add a provision in your will or trust designating either a percentage, specific amount, or all or a portion of the residue of your estate to the school. You can designate your gift or leave it unrestricted for general use–and gifts of all sizes are appreciated.
Naming Vermont Academy as the beneficiary of all or a portion of a retirement account, bank or brokerage account, donor-advised fund or insurance policy, is a tax-smart way to make a gift to the school that leaves a lasting legacy while avoiding a significant built-in tax liability. When left to individuals, the value of the gift may decrease by up to 70%, but if used to make a gift to Vermont Academy, the funds are transferred tax-free and we are able to realize the full value of the gift.
Sample language for use as you plan your estate can be found here.
Please ask your sending bank to include name of donor as identifying information on the wire and designation (if any). Without this information, there may be a delay in crediting the appropriate program and acknowledging the donor.
Bank: TD Bank 2 Church Street Bellows Falls, Vermont 05101 802-463-4511