Connie Maxwell Children's Home

Providing A Future For The Children Of Tomorrow

Giving Through Retirement Plans

Millions of Americans have taken advantage of generous tax incentives provided by Congress to encourage savings for their retirement years. Known as "qualified" retirement plans, these options have traditionally featured income tax benefits at the time contributions are made. The assets in the plans then build tax free for future use. Amounts in traditional qualified plans are typically not subject to income tax until they are actually withdrawn.

Because they are included as part of the taxable estate at death, the assets in qualified retirement plans, such as IRA's, 401(k), Keogh, and others, can also be subject to estate taxes. It can be easy to overlook retirement fund assets when estimating the total value of one's estate. Experts predict that over time, accumulations in qualified retirement plans will increasingly cause the value of many estates to rise above the threshold levels and become subject to estate taxes.

Careful planning can minimize the taxes due on retirement plan assets during life and death. Rather than see retirement assets absorbed by taxes, individuals can direct that such assets be used to make charitable gifts from their estates. This can actually result in more assets being received by their families than if charitable gifts were made from other funds in the estate.

If you would like additional information on this or any other type of giving, Please call Eric Taylor, Director of Planned Giving, at 1-800-868-2624 or e-mail Eric.