Naming Emma Willard School as a beneficiary of a qualified retirement plan (IRA, 401(k), Keogh, SEP and others) can be a particularly attractive way to make a gift.
Naming your school as a beneficiary of your IRA (and many other plans) is often the simplest way to leave a substantial, lasting gift to Emma Willard. Also, because these plans are taxed so heavily, surprisingly little of the assets in the plan may end up the hands of family members or beneficiaries after your death. Since these assets accumulate on a pre-tax basis, distributions to beneficiaries after your death are subject to federal income taxes. These assets are also included in calculating your gross estate, which can mean that they are subject to federal estate taxes as well.
Using the assets to make a charitable gift to Emma Willard School generates an estate tax charitable deduction. Further, Emma Willard School will not have to pay income tax on the assets when they are received. So naming Emma Willard as a beneficiary of your qualified retirement plan can be beneficial to all.
An IRA charitable rollover allowed some donors to make a charitable gift of up to $100,000 from their IRAs without having to pay taxes on the distribution.
This provision in law, first enacted in 2006, has not yet been extended by Congress for the 2014 tax year, though we remain hopeful that it will be renewed. Please consult with your financial advisor to be sure of the tax consequences of making an IRA charitable rollover.
For more information, contact Joseph Hefta, development officer, at (518) 833-1831 or by email at firstname.lastname@example.org.