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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.6 IRA, Pension and IRD  >  4.6.3 IRA Bequests/Loans to Charity  >  Basic Quiz

Basic Quiz - 4.6.3 IRA Bequests/Loans to Charity

1. Most IRAs are funded with pre-tax dollars.
           
2. If an IRA is given to charity at the death of the IRA owner, the charity must pay income taxes on those funds.
           
3. If a charity is listed as the designated beneficiary of an IRA it will cause the IRA owner to have to take larger distributions while he or she is living.
           
4. If a charity is listed as a designated beneficiary along with others such as children, it is best to cash out the charity after the passing of the IRA owner but before September 30 of the year after the IRA owner's passing.
           
5. There is more than one potential strategy for an IRA loan.
           
6. IRAs can be funded by rolling over a pension plan into an IRA.
           
7. For most individuals, an IRA represents a small part of their estates.
           
8. If an IRA owner wishes to leave a bequest to charity, the best asset to use is some or all of the IRA.
           
9. If an estate is required to use funds from the IRA to pay estate taxes, the IRA beneficiaries are allowed a 691(c) income tax deduction on future distribution from the IRA.
           
10. Distributions received from an IRA will almost always be taxed at ordinary income tax rates.