What to Do:
- Contact the plan custodian or account holder about a TOD (Transfer on Death) or beneficiary designation form.
- Designate LivingWell Medical Clinic to receive all or a portion of the assets held in the retirement plan.
- Avoid the potential double taxation your retirement savings would face if you designated these savings to your heirs.
- Continue to take regular lifetime withdrawals.
- Maintain flexibility to change designation if your family’s needs change during your lifetime.
- Gifts can be used to satisfy your IRA required minimum distribution each year.
Retirement Accounts: A Wise Charitable Gift
Leaving retirement plan assets to LivingWell Medical Clinic can be one of the best financial decisions you can make and can be made without adverse effects to your lifetime finances.
Donors should consult with their tax advisor regarding the tax benefits of such gifts.
Naming LivingWell Medical Clinic as the beneficiary of a qualified retirement plan asset such as a 401(k), 403(b), IRA, Keogh or profit-sharing pension plan will accomplish a charitable goal while realizing significant tax savings. It can be costly to pass such assets on to heirs because of heavy tax consequences. By naming LivingWell Medical Clinic as a beneficiary of a retirement plan, the donor maintains complete control over the asset while living, but at the donor’s death, the plan passes to support LivingWell Medical Clinic free of both estate and income taxes.
Making a charitable gift from your retirement plan is easy and should not cost you any attorney fees. Simply request a change-of-beneficiary form from your plan administrator. When you have finished, please return the form to your plan administrator and notify LivingWell Medical Clinic. We can also assist you with the proper language for your beneficiary designation to LivingWell Medical Clinic.
Because traditional retirement plans such as Individual Retirement Accounts, 401 (k) and 403 (b) plans are funded with pre-tax dollars, the contributions and earnings that you make to this account are not subject to income tax. When you reach the age of 59 ½, you can take money out of your retirement account without penalty, but you do have to pay ordinary income tax on the distributions. If funds remain in the account after you pass away, be aware that your heirs may have to pay inheritance and estate taxes in addition to income taxes. Depending on the size of your estate, these combined taxes can be as much as 60% of the remaining account balance. However, when you leave a portion of your retirement plan assets to LivingWell Medical Clinic, this portion will be exempt from income, inheritance and estate taxes.
When planning to support LivingWell Medical Clinic and leave assets to loved ones, make certain that you leave your pre-tax assets to qualified charities and your other assets to your loved ones. This strategy assures that your heirs pay less tax on the assets that they receive.
Contact your account custodian today and complete the beneficiary designation forms to maximize the tax savings, take care of your loved ones and leave a legacy to LivingWell Medical Clinic.