How to Make a Charitable Bequest from an IRA or Retirement Plan

  • Name the Jewish Community Foundation of Los Angeles (EIN: 95-6111928) as a beneficiary of all or a portion of your IRA, 401(k) or other qualified plan by completing a beneficiary designation form through your plan administrator. Note that your Will does not govern your IRA, 401(k) or other qualified plan.
  • All or a portion of the balance in your plan will go to The Foundation after your passing
  • Benefits: Distributions from your traditional IRA to non-charitable beneficiaries are taxable at ordinary income rates. In addition, with limited exceptions, IRA inheritors other than your spouse must take those distributions within 10 years. Naming the Foundation as beneficiary of your IRA and passing other appreciated assets to your loved ones could spare them a sizable tax bill. And since the Foundation pays no income tax on your IRA distributions, the full value benefits the community.

How to Make an IRA Qualified Charitable Distribution for 2020 and Beyond

  • If you are age 70 ½ or older, you may transfer up to $100,000 per year directly from your IRA to The Foundation to fund a new or existing endowment as a Qualified Charitable Distribution (“QCD”). A QCD may also be used to support our Permanent Legacy Fund, contributing to The Foundation's ongoing annual grantmaking. Note that QCDs may not go to donor advised funds*, family support organizations, private foundations, gift annuities or charitable remainder trusts.
  • Contact your IRA plan administrator to transfer assets directly to The Foundation by 12/31/2020 to qualify for a 2020 gift. QCDs may not be claimed after-the-fact for distributions that you have withdrawn and cashed, as it is required that funds transfer directly to The Foundation. To maximize your charitable impact, consider making a QCD each year now that Congress has permanently extended this provision.
  • Benefits: Even if you do not itemize your deductions or you have reached the annual federal ceiling for federal charitable deductions, a QCD from your IRA could save you money. QCDs are not deductible, but because they are not included as income to you for tax purposes, the resulting lower reported income may lead to various tax benefits for you. Once you are required to withdraw funds, you may count your QCD toward your Required Minimum Distribution for the year.**

(*You can make a non-QCD charitable gift to from your IRA or retirement plan to your donor advised fund. You must first report the distribution on your income tax return and then claim an offsetting charitable income tax deduction, subject to limitations.)

(**Congress suspended Required Minimum Distributions for the year 2020)

The Foundation does not provide legal or tax advice. Please consult your professional advisors.