IMPACT GIVING: Retirement Accounts
IRAs, TSAs, 401(k) plans, and other “defined contribution” retirement plans are generally taxable as income when retirement distributions begin. Most require distributions to start at age 70 ½ even if the retiree doesn’t want or need the income. Naming Grace of Christ Church as the beneficiary for all or part of the plan’s assets could help avoid some of these problems and provide a substantial gift.
- Potential income tax savings for the donor.
- Gift may be tax deductible to the donor.
- Potential estate tax reduction for the donor.
- Donor could draw income from the retirement plan while living and leave the remainder to Grace of Christ Church upon death.
- Donor has $50,000 in an IRA at age 70½ but doesn’t need the income. He begins to take the mandatory distributions either for himself or donates them to Grace of Christ Church and names Grace of Christ Church as beneficiary of the remainder upon death.
Please contact your financial advisor to determine how comparable figures would apply based on your particular case.