Smart Giving from Your Individual Retirement Account

A Tax-Saving Way to Help Students at National Louis University. Individual Retirement Accounts (IRAs) are valuable tools to prepare for expenses after you stop working. People who have saved more than they require in retirement may make charitable gifts from their IRAs, obtaining significant tax advantages. A contribution to NLU through your IRA makes it possible to support National Louis University students today while saving on taxes.

At any age

No matter your age, you can designate NLU as the beneficiary of all or a percentage of your IRA and it will pass to us tax-free after your lifetime. It’s simple, just requiring that you contact your IRA administrator for a change-of-beneficiary form or download a form from your provider’s website.

For those 59½ years old or older

If you are at least 59½ years old, you can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions, you can take a charitable deduction for the amount of your gift.

A special opportunity for those 70½ years old and older

You can donate up to $100,000 per year from your IRA directly to a qualified charity such as NLU without having to pay income taxes. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution, or QCD for short.

Why consider this gift?

• Your gift will be put to use today, allowing you to see the difference your donation is making.
• Beginning in the year you turn 73, you can use your gift to satisfy all or part of your required minimum distribution (RMD).
• You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
• Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

Please let us know of your gift because many retirement plan administrators do not notify a charity of your designation. We would appreciate the opportunity to thank you for your generosity and talk to you about your intentions to ensure that they are followed.

Please contact Christopher Chantson, Vice President of Institutional Advancement at cchantson@nl.edu or 312-261-3871 for more information, or to notify us of a Qualified Charitable Distribution.

This site is informational and educational in nature. It is not offering professional tax, legal, or accounting advice. For specific advice about the effect of any planning concept on your tax or financial situation or with your estate, please consult a qualified professional advisor.