Leave a Lasting Legacy: Make a Gift in Your Will or Estate Plan
If you are aged 70½ or above, you have the opportunity to execute a tax-free distribution from your IRA directly to Merrimack College. This strategy is a highly efficient method of bolstering the causes you hold dear, supporting our institution’s mission while optimizing your tax benefits.
How it Works
You can contribute to Merrimack College through a check, wire transfer, or online donation, investing in the future of higher education.
- You can direct distributions from your traditional or Roth IRA to Merrimack College in an amount you choose, up to an annual limit set by the IRS (please note, other types of retirement plans are not covered by this law).
- These distributions go directly to Merrimack College and are not subject to federal income tax, thus providing a tax-efficient way to support higher education.
How You Benefit
- If you’re aged 73 or above, your contribution can be utilized to satisfy your Required Minimum Distribution (RMD), helping support the mission of higher education at Merrimack College.
- This method allows you to potentially bypass the income tax penalty on your distributions, making your gift even more impactful.
- Witness the immediate effect of your generosity, as your gift goes straight into supporting essential educational initiatives, enhancing the quality of higher education provided at Merrimack College.
Can it Work For You?
A gift through your IRA may be for you if:
- You are over age 70½.
- You are over age 73 and do not need the additional income from your required minimum distribution (RMD).
- You don’t itemize deductions, or you are subject to a rule that limits your deductions.
- You live in a state with no charitable income tax deduction.
- You are no longer working and making contributions to a retirement plan.
More Information
Example: You are 75 years old and your adjusted gross income will total $200,000 this year. You direct a $100,000 payment from your IRA to us.
- Donor: Individual, age 75
- Withdrawal from IRA: $100,000
- Contribution: $100,000
- Income tax on withdrawal: $0
- Charitable deduction for withdrawal: $0
Please note that Merrimack College planned giving cannot render tax or legal advice, and we urge you to consult with your professional advisor about your situation before making a charitable gift.
Making Your Gift
Contact your IRA custodian and ask them to send the check for a “qualified charitable distribution” to Merrimack College to the attention of the Planned Giving at the following address:
Merrimack College
Austin Hall
315 Turnpike Street
North Andover, MA 01845
Please Note
If you’re currently employed and making contributions to a retirement account, this kind of gift to Merrimack College could affect your taxable income. We strongly recommend consulting with a qualified advisor before making such a contribution. If you’re under the age of 70½, you can use your IRA to support Merrimack College’s mission by making a withdrawal and donating the post-tax proceeds, or by designating Merrimack College as a beneficiary of your retirement plan.
It’s important to note that Qualified Charitable Distributions (QCDs) can only be made from Individual Retirement Accounts (IRAs). Unfortunately, QCDs cannot be made directly from other types of retirement plans such as 401(k) or 403(b) accounts. Please consult with your financial advisor for potential strategies to roll over these funds into an IRA if you’re interested in making a QCD to support Merrimack College.
