Directing Your IRA

Making the College a Beneficiary

A retirement plan can be a tax-efficient and simple way of including PA College in your estate plan. The simplest method is to name PA College as a beneficiary on your plan’s beneficiary designation form.

IRA Charitable Rollovers

If you are over the age of 72, you may be able to take further advantage of tax savings by making a gift from your Individual Retirement Account (IRA), distributing up to $100,000 per calendar year from an IRA to PA College tax-free. This can be a significant benefit if you must take Required Minimum Distributions each year. Your charitable distribution will count toward your Required Minimum Distribution but will not be included in your income for income tax purposes. You will not be entitled to a charitable deduction for the distribution.

How It Works:

• You must be 72 or older at the time of distribution *
• Your IRA administrator must make the distribution directly to the College, or you may write a check payable to PA College from your IRA checkbook

*The SECURE Act, which became law on December 20, 2019, made major changes to the RMD rules. If you reached the age of 70½ in 2019 the prior rule applies, and you must take your first RMD by April 1, 2020. If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72.