Legacy Planning News and Information

Please click HERE for a downloadable PDF of this months Legacy Planning Newsletter.

Dear Friend of LBCC,

It's that time of year to start thinking about tax day. But there's good news for many.

In year-end legislation, the ability to make a donation directly to charity from your Individual Retirement Account (IRA) has been made permanent. This is known as a Qualified Charitable Distribution (QCD). Now you can plan ahead for the year under this new law. Let’s review the rules:

You must be age 70 ½ or greater at the time of the donation. The maximum allowable amount is $100,000 per year and the QCD must be made directly from the IRA to the charity. In our case, the Linn-Benton Community College Foundation (our tax ID is 23-7212073).

What are the benefits of doing this? The charitable contribution qualifies for your annual required minimum distributions (RMD’s). If you were to make a standard withdrawal from your IRA, some negative things could happen. That’s because taxable IRA distributions must be included in adjusted gross income. As a result:

Income taxes on Social Security benefits can increase,
Adjusted gross income (AGI) limitations on annual charitable deductions can defeat current deduction of the charitable contribution of IRA distribution proceeds (carryovers to a limited number of future tax years is available),
AGI limitations trimming itemized deductions can apply, and
Medicare insurance premiums can increase.

QCD’s avoid those results. Importantly, QCD’s automatically satisfy required minimum distributions for the year when the QCD is made. That’s a real advantage for a charitably minded IRA owner who doesn’t need RMD’s to live on.

For more information, contact Jim Birken at 541-760-0295 or visithttp://www.futurefocus.net/lbcc/plangiv.htmto learn more about how you can convert your taxable IRA distribution and potentially reduce your taxes.

Thank you for your support of Linn-Benton Community College


(information coming soon)

The greatest fear people have around retirement is outliving their money and not having enough to meet basic needs. Read more.

If you would like any information regarding these articles, or anything related to gift planning, estate gifts, endowments, charitable gift annuities, or contributions in general, please contact me.


Jim Birken
Gift Planning Manager
Linn-Benton Community College

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LBCC Foundation
Federal Tax ID# 23-7212013