DONATION OF RETIREMENT PLANS

When retirement plans are left as part of an estate to anyone other than a spouse, they can be subject to very high estate and income taxes.  These include tax-deferred retirement plans such as an IRA, Keough Plans, 401(k) plans and 403(be) plans.  Donors can avoid such taxes by naming the school as the final beneficiary on these plans.

These plans can be used to fund a charitable remainder unitrust or annuity trust for the spouse, and donated to the school upon the spouse's death.

When retirement plans are left as part of an estate to anyone other than a spouse, they can be subject to very high estate and income taxes. These include tax-deferred retirement plans such as an IRA, Keough Plans, 401(k) plans and 403(b) plans. Donors can avoid such taxes by naming the school as the final beneficiary on these plans. These plans can be used to fund a charitable remainder unitrust or annuity trust for the spouse, and donated to the school upon the spouse’s death.

You can also now make gifts from your IRA while you are still alive! Donors aged 70 1/2 can withdraw up to $100,000 each year from their individual retirement accounts tax free if they give the money directly to a 501c3 charity, like St. Elizabeth School.

Benefits of Donating Retirement Plans

• Leaves a legacy for the school, aiding it in continuing its mission.
• May provide estate tax savings. *

* According to recent tax laws, the estate tax will be phased out gradually until 2009, be totally eliminated in 2010, and then return its 2001 levels in 2011, under a "sunset provision."  Thus, currently the estate of a Will executed after 2010 might be subject to taxes, which could be reduced by charitable remainder trusts.

For more information on planned gifts, please click this link and submit form. 

Return to Planned Giving Page