Using your retirement plan to fund a charitable gift is beneficial because it allows you to avoid taxes that would otherwise apply to your distributions. A donation of these funds to charity can also reduce your annual income and potentially save on Medicare premiums.

Assets like IRAs and 401(k)s are among the least tax-efficient to leave to heirs. When heirs inherit these assets, they may be required to pay ordinary income tax on distributions they take, which can result in a substantial tax burden.

Benefits of giving through your retirement plan

• Avoid income taxes you would pay on account distributions.
• Preserve lesser-taxed assets for your heirs.
• Satisfy your required minimum distribution (RMD) with a qualified charitable distribution (QCD).
• Easy to achieve through a plan request with your administrator.

How to give retirement assets

Ways to give retirement assets now or later

There are multiple options for using your retirement assets to advance the fight against Alzheimer's and all other dementia. The best option will depend on your personal situation and what you wish to achieve through your generous gift.

• Qualified charitable distributions (QCDs). If you're age 70.5 or older, you can donate directly from a traditional IRA to the Alzheimer's Association. This amount counts toward the required minimum distribution (RMD) and is excluded from taxable income, reducing your overall tax liability and potentially lowering Medicare premiums or taxes on Social Security.
• Charitable gift annuity (CGA). If you're 70.5 years of age or older, you may use funds from your IRA once to fund a CGA up to $55,000, which pays income to you or a spouse for life. Later, the remainder goes to the Alzheimer's Association.
• Naming the Alzheimer's Association as your beneficiary. Name the Association as the beneficiary of your retirement account by completing a beneficiary designation form with your administrator. The Alzheimer's Association will receive the remaining assets tax-free, avoiding income tax if your assets were left to your heirs.
• Withdraw cash and donate. Withdraw funds from your retirement account, pay the income tax, and then donate the cash. You may be able to claim a charitable deduction that offsets some or all of the tax owed.
• Charitable remainder trust (CRT). If you're over age 70.5, funds from an IRA can be used once in a lifetime to fund a CRT, which pays income to the beneficiary, and potentially their spouse, for a set term or for life. This provides income payments now and may reduce estate taxes. The remainder will then go to the Association. CRTs funded by IRAs are subject to significant limitations and conditions imposed by federal law, please consult your attorney to learn what works best for you.

Ready to make a qualified charitable distribution?

If you're 70.5 years of age or older, you can make a qualified charitable distribution (QCD) directly from your IRA to the Alzheimer's Association.

Contact your IRA administrator. Tell your plan administrator you'd like to make a qualified charitable distribution to the Alzheimer's Association. They may have a simple form or online process to initiate the transfer.

Provide our details. Your administrator will need:

• Legal name: Alzheimer's Disease and Related Disorders Association, Inc.
• EIN: 13-3039601
• Mailing address: 225 N Michigan Avenue, Floor 17, Chicago, IL 60601 Attn: Planned Giving
• Phone: (312) 335-8700

Please include your name and address with your check request. IRA gifts often arrive without donor information. Including your information is the only way to receive an acknowledgement in a timely manner.

Are you making a QCD to the Alzheimer's Association today or have you done so recently?

Notifying our team at the Alzheimer's Association of your upcoming gift is valued and appreciated. Qualified charitable distributions can often arrive with very little information. Thank you for letting us know so that we can do our best to provide you with our gratitude and the tax acknowledgement you need.