Save Taxes, Increase Income - Simple strategies for making life better

Sometimes the most profound things we can do are also the simplest. Here are two common problems you might have in your estate planning — and simple solutions for both.

If you are 70½ or older, then you can use your IRA to make a meaningful gift. You may have other appreciated assets, like stocks or mutual funds, that have grown in value over time.

By donating them directly, you can avoid capital gains taxes and make a larger impact on supporting Baylor University’s mission at no additional cost to you.

HELP IS AVAILABLE

Baylor’s Office of Gift Planning can help you with these taxing situations:

• IRA QCD: Use your IRA qualified charitable distribution (QCD) to make an easy and impactful gift. If you have a required minimum distribution (RMD), it can help you save on income taxes. Ask your IRA administrator to make a QCD to Baylor University instead. It satisfies your RMD up to the annual QCD limit. You will not receive an income tax deduction for the distribution, but you will also not pay taxes.

• Charitable Gift Annuity (CGA): When you fund a CGA with appreciated stock, your payments are based on the stock’s current value, not your basis. Some of your capital gains are eliminated, while others are spread over several years. You also receive an income tax deduction for part of the funding amount.

• Combine both: You can use your QCD to fund a CGA. There is no income tax deduction, but you will receive a fixed, favorable payment rate. There are limits to the amount, but this gift is so good that you can only do it once in your lifetime.

• These are just a few ideas among many others on how you can support Baylor through gift planning. Please contact us at (254) 710-2561 to learn more!