Individual Retirement Accounts

Traditionally, assets held in an Individual Retirement Account (IRA) or in a qualified retirement plan such as a 401(k) account have been very appropriate for leaving to Medical Teams International by way of a beneficiary designation.

This is because these assets are often fully taxable when received by surviving family members or other individuals, but not when received by Medical Teams International, which is a tax-exempt organization. By contrast, drawing upon such assets during your lifetime in order to make a gift to Medical Teams International can sometimes result in having to pay extra tax.

During retirement, qualified charitable distributions ("QCD") may also be made directly to Medical Teams International. The IRS has extended this option through 2011.  

A QCD is generally a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgement of your contribution that you would need to claim a deduction for a charitable contribution. The maximum annual exclusion for QCDs is $100,000. 

If you have questions, please contact Linda Ranz at 425.284.1941 or lranz@medicalteams.org.