Gifts of Retirement Plans
Keep taxes from taking most of your retirement plan's assets.
Today, with over $4 trillion in Keoghs, 401(k)s, 403(b)s, IRAs
and the like, Americans are discovering that the tax bite on a retirement
plan can leave little for their heirs. Retirement savings can trigger
substantial taxes upon death. An asset-devouring combination of
income and estate taxes can consume up to 75 percent of your pension,
IRA or other retirement savings.
Estate planning and charitable gift planning can help donors take some control of their money's destiny. An easy solution is to name the CFGC as beneficiary of your retirement plan. Upon death, the unused benefits will be distributed to the CFGC free of taxes. If you have children or other heirs, you can leave them stocks, your home or other assets that are not taxed as heavily.
Another strategy lets you turn your retirement savings into a lifetime source of income for your spouse or children before giving it to the CFGC.
This can yield significant tax savings. In the end, the donor accomplishes two objectives. First the donor creates a substantial gift to charity, and also reduces the amount of retirement savings that will be lost to taxes.
