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Focus on Retirement Plans

In addition to IRAs and 401(k)s, there are 403(b) plans for nonprofits, defined benefit plans and other defined contribution plans. The total value for all qualified plans is over $15 trillion. If plan owners with substantial balances have “charitable receptivity,” they may consider a qualified charitable distribution (QCD). The QCD may save income taxes by allocating part or all of their 2016 required minimum distribution to a favorite charity. In addition, perhaps $10 trillion will be income in respect of a decedent (IRD) for the estates of these plan owners. They may select charities or a Charitable Remainder Trust (CRT) as a designated beneficiary. The “Give It Twice” testamentary CRT funded with an IRA benefits children for a term of 20 years and then charity.

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