Gift Your IRA Required Minimum Distribution

Making 4KIDS the beneficiary of your retirement plan enables you to turn any unused retirement assets into another way to support 4KIDS. Avoid potential estate tax — and very heavy income taxes on retirement assets — by designating 4KIDS as the beneficiary of unused funds in your IRA.

When you reach 70 1/2, you must take minimum withdrawals each year, also known as Required Minimum Distributions (RMD). You can also gift your Required Minimum Distribution – up to $100,000 through a Charitable IRA Rollover.

Besides advancing the mission of 4KIDS, there are three benefits when you gift your RMD to 4KIDS:

• Gifting your RMD excludes the amount donated from taxable income, unlike regular withdrawals from your IRA.
• Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare.
• Receive a charitable deduction
• Help more kids experience hope, homes, and healing

Consult a tax advisor to determine if your IRA qualifies for QCDs if making a QCD from a Roth is appropriate for your situation.

Gift More With An IRA Charitable Rollover

A Charitable IRA Rollover makes it easier to use IRA assets, during your lifetime, to make charitable gifts to 4KIDS. Because the IRA rollover is permanent, you can also make many more IRA charitable rollover gifts in years to come.

The Charitable IRA Rollover allows individuals age 70½ and older to make direct transfers of up to $100,000 per year from individual retirement accounts to qualified charities without having to count the transfers as income for federal tax purposes. Since no tax is incurred on the withdrawal, gifts do not qualify for an income tax charitable deduction but are eligible to be counted toward an individual’s minimum required distribution.

How To Make Gifts From Your Qualified Retirement Accounts

• Contact your retirement administrator, notifying them you would like to donate your RMD or Charitable IRA Rollover directly to 4KIDS.
• Your administrator will disperse the funds directly to 4KIDS. This direct disbursement avoids federal tax on the RMD.
• If you have check-writing privileges from your IRA, please make the check payable to 4KIDS. State on the check memo line or in your letter whether this is a gift of your RMD.
• Contact 4KIDS Gift Planning with the name of the retirement plan administrator and how you would like the funds to be designated.
• 4KIDS address and Tax ID below will be required to complete this transaction.

If you or your financial and legal advisors have questions, please call Joel Ceballos, Director of Gift Planning, directly at 954.590.1541 or by email giftplanning@4KIDS.US

This Retirement Plan section provides general gift, estate, and financial planning information. We do not intend it as legal, accounting, or other professional advice. For assistance in planning charitable gifts with tax and other financial implications, please obtain the services of appropriate advisors. Consult an attorney for advice if your plans require revision of a will or other document.