Create a Lasting Legacy: Support SBMM with a Planned Gift
by Amanda Thomas, CFP®
Create a promising future and legacy by making a bequest or other planned gift to the Santa Barbara Maritime Museum. Your support allows the museum to inspire creativity through engaging exhibitions; build community through gatherings and events; and participate in important initiatives – all while highlighting 13,000 years of maritime history – from Chumash culture to today’s surfing and environmental movements. Your planned gift will have a lasting impact on the community, and for future generations. The greatest reward comes from knowing that you are helping the museum fulfill its mission and vision for generations to come.
There are many ways to give! Including:
Required Minimum Distribution (RMD)
A Required Minimum Distribution (RMD) is the minimum annual amount that must be withdrawn from a retirement account once you reach a specific age. The SECURE Act increased the RMD age from 70.5 to 72 years in 2019; SECURE Act 2.0 increased the RMD age from 72 to 73 starting in 2023, and the RMD age increases to age 75 starting in the year 2033. You can calculate the RMD amount to withdraw based on the value of the retirement account at the end of the previous year, divided by the IRS life expectancy table.
Remember! The amount withdrawn as an RMD is taxable if the account holder withdraws the money and deposits it into their personal bank account. However, there’s a way to manage this tax liability through Qualified Charitable Distributions (QCDs).
Qualified Charitable Distributions (QCDs)
For those aged 70.5 or older, a Qualified Charitable Distribution (QCD) is a tax-free transfer of up to $105,000 from an IRA to a qualified charity or multiple charities each year.
The benefit of a QCD is that the withdrawn amount is not taxable to the account holder, provided it is documented as a QCD in their tax return. This can be a tax-efficient way for many to fulfill their charitable goals, especially since standard deduction limitations that can reduce the amount of taxable income might make it less beneficial to write donation checks from personal bank accounts or donate appreciated stocks.
What are the benefits of a QCD?
By understanding and utilizing RMDs and QCDs effectively, retirees can not only comply with IRS requirements but also support their favorite charities in a tax-efficient manner. In most cases, the checks for QCDs are issued by investment companies such as Schwab or Fidelity and made payable directly to the charity.
SBMM is ready to work with you and your professional advisors to discuss giving options that best fit your personal circumstances. Please contact SBMM Executive Director Greg Gorga at ggorga@sbmm.org with any questions.