Retirement Plans

Retirement and pension plans are critical elements of financial and gift planning. Some common plans are 401k, 403b, and traditional IRA accounts. When funds are withdrawn, such as when you take a distribution, they are taxed at your current income tax rate.

Some assets are more beneficial to give to heirs and others are more beneficial to give to a charity. Since funds from these retirement plans are taxed as they are withdrawn, your heirs will incur the tax at their current income tax rate. If the beneficiary of the retirement plan is a charity, the charity will not pay any taxes on the funds.

Since Shepherd of the Lake Foundation is tax-exempt, you may use your retirement plan to make a significant charitable gift. Following your death, the designated portion of the funds will be paid to the Foundation in a lump sum, completely tax free.

Giving from your retirement plan is easy because you do not need to change your will or trust. You simply make the Foundation the beneficiary of the plan. You may give the whole amount or a percentage. A beneficiary designation form is available from your plan's custodian (investment management company).

The examples included on this website are for illustrative and educational purposes only and should not be considered tax or legal advice. Please consult with your tax or legal professional about proceeding with your gift plan. The Shepherd of the Lake Foundation is a 501(c)(3) not for profit organization. Our EIN number is 41-1638874.