Gifts From Your Retirement Plan
Your savings are a testament to your hard work and the success you have built. However, a distribution from your retirement plan is treated as ordinary income under federal and state laws. For most people, this means that either they or their heirs will pay between 25% and 45% in combined federal and state income taxes on the assets in the retirement plans.
Instead of paying a large tax bill, your gift can build a brighter future for others. Donate your 401(k), IRA, or other qualified pension plan and tell us how you would like to see your gift to serve the community.
- 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 beneficiaries if your family’s needs change during your lifetime
- You can direct your annual Qualified Minimum Distribution to CFGP to serve a charitable purpose. Failure to take the required minimum distribution after age 70 1/2 results in a 50% tax on the undistributed amount
To make this gift :
- Notify the plan administrator
- File a “Change of Beneficiary” Form
- Include beneficiary designation in your estate documents
SAMPLE BENEFICIARY DESIGNATION LANGUAGE FOR A SPOUSE AND CFGP:
The beneficiary is my spouse as long as he/she survives me. The beneficiary of any amount(s) remaining in the plan after the death of my spouse, or of the entire amount in the plan upon my death if my spouse does not survive me, or of any portion thereof that my spouse may disclaim, is The Catholic Foundation of Greater Philadelphia, for its general charitable purposes or for the benefit of (name of parish or charity).
Learn more about the steps in thoughtful planning. The Catholic Foundation of Greater Philadelphia is established to be a tool for you to leave a lasting and secure legacy. Use our request for information form to learn more.