Year End Giving to Saint Anne
Qualified Retirement Accounts
When naming a beneficiary of a qualified retirement account (IRA, 401(k), 403(b), etc.), a family member is typically the first option that comes to mind. However, such qualified plans are generally subject to estate taxes and income tax deferred, meaning that income tax is not paid until the retirement funds are distributed to you or you beneficiary. This taxation can make retirement assets among the most costly assets to distribute to loved ones. Because your estate may be subject to estate taxes and your beneficiary to income taxes, retirement assets make ideal gifts to tax-exempt charitable organizations such as Saint Anne Parish and/or School. For example, if a $1,000,000 traditional IRA was left to an individual, the taxable decedent’s estate may owe as much as 50% of the $1,000,000 in estate taxes, and the beneficiary would have to pay income taxes, as high as 39.6% on the remaining IRA funds. Thus, $500,000 could be owed from the estate and $198,000 from the beneficiary for taxes, leaving only $302,000 available to the beneficiary. If Saint Anne is named the beneficiary of the $1,000,000 traditional IRA, we could utilize the full $1,000,000 of value and not pay any transfer taxes. In addition to the tax savings that can be taken by naming Saint Anne as the beneficiary, it is a great way to leave a lasting legacy.
The big gains in the stock market combined with the tax law now in effect give you an opportunity to do some positive tax planning and to benefit charities with a donation before the end of the year.
Let’s make a case for donating appreciated stock to Saint Anne Parish and/or School. Consider that we have efficiently paid staff and hold our expenses in check, with little change in controllable expenses year over year. Know that our Parish Leadership continues to seek out ways to enrich your spiritual development and enhance programs for the youth of the parish.
We will make it easy for you, but suggest you act before Christmas to give us time to execute the transaction and get you a dated confirmation. Just talk to your broker, fill out the ‘Stock Donation-Letter of Intent’ (instructions and form on the following pages) and send it to Greg Salm at the Archdiocese for processing. Please email a copy of the letter to firstname.lastname@example.org so she can ensure prompt notification that the stock was received.
Archdiocese of Chicago