A good way to save: Qualified retirement plans - 401(k) and 403(b) plans, IRAs, Keoghs, and others - will be many people's major source of income after retirement. Contributions to these plans are often tax-free and usually grow tax-free as well.
A great way to give: Yet, assets in retirement accounts are heavily taxed when inherited by family members. Liable for both income tax (unlike most other assets), plus possible estate tax, these accounts can shrink by 70% in the hands of loved ones.
Retirement plans are less valuable in the hands of heirs than they are in the hands of tax-exempt organizations like the VHS. The income and estate taxes that are saved will actually pay for most of the gift.
To designate part or all of a retirement plan for the VHS, take these simple steps:
Contact your plan administrator, by obtaining their name and address from your employer, or your own records.
Obtain a copy of the designation of beneficiary form, and list the VHS for whatever share of the balance you desire.
You can give surplus funds from your IRA to endow the VHS, thanks to the American Taxpayer Relief Act of 2013!
The familiar IRA charitable rollover is back. First enacted in 2006 and effective in most years since, this law allows owners of traditional IRAs to direct up to $100,000 from their IRA to qualified charities like the VHS, without having to recognize these distributions as income for tax purposes, if:
The account owner is at least age 70½ , and
The IRA distribution goes directly from the IRA to the VHS without passing first to the donor.
Please note your designation in your own records, and inform Pam Seay at 804.342.9681 or firstname.lastname@example.org, who will gratefully offer you membership in the Virginia Heritage Registry, the society’s way of honoring those who include it in their long range planning.