Consider a Donation of Retirement Assets
Retirement plan assets are a great way to support the work at Children's Healthcare of Atlanta because they not only help support the mission, but they also can provide tax relief for your loved ones.
Money in an employee retirement plan, IRA or tax-sheltered annuity may be subject to federal and state estate taxes. In addition, each of these plans contains income that has yet to be taxed. When a distribution is made from your retirement plan account to a beneficiary, that person will owe federal income tax in addition to applicable state income taxes.
Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to Children's to support our work. As a nonprofit organization, we are tax-exempt and will receive the full amount of what you designate to us from your plan. You can take advantage of this gift opportunity in the following ways:
Name us a beneficiary of your plan. This requires you to update your beneficiary designation form through your plan administrator. Here you can designate Children’s Healthcare of Atlanta as the primary beneficiary for a percentage or specific amount. You can also make us the contingent beneficiary so that we will receive the balance of your plan only if your primary beneficiary doesn't survive you.
With the IRA Charitable Rollover, if you are 70½ years old or older, you can take advantage of a simple way to help those we serve and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as Children’s Healthcare of Atlanta without having to pay income taxes on the money.
Fund a testamentary charitable remainder trust. When you fund a charitable remainder trust with your heavily taxed retirement plan assets, the trust will receive the proceeds of your plan. The trust typically pays income to one or more named beneficiaries for life or for a set term of up to 20 years, after which the remaining assets in the trust would go to support Children’s Healthcare of Atlanta. This gift provides excellent tax and income benefits for you while supporting your family and our work.
A donor advised fund. When retirement plan assets pass to your heirs, they can be subject to federal income and estate taxes. This combined income and estate tax burden can be substantial, greatly reducing the value of the intended gift. Instead, you can designate your donor advised fund as the beneficiary of all or a portion of your retirement plan assets. Your fund receives the full amount of the gift and bypasses any federal taxes.
A Real-Life Example of How It Works
After returning home from fighting in World War II, Powdly White experienced one of many life-changing miracles—love at first sight. While in a Decatur, GA, café, he introduced himself to a lovely woman sitting nearby and told her that he would be marrying her. After a whirlwind, two-week courtship, he and the love of his life, Irene, were married.
The couple would go on to spend 57 years together. As Powdly said, "Irene will always be in my heart."
Powdly and Irene were blessed with three daughters: Deborah, Michelle and Kim. Their oldest, Deborah, had difficulty walking without falling when she was a child. Fortunately, she had a wonderful experience at our Scottish Rite Hospital, where her condition was treated successfully. Powdly and Irene were extremely grateful for the care their daughter received at Scottish Rite.
In 1968, tragedy struck the White family. Their three girls, then ages 12, 4 and 3, were killed in an automobile accident. Powdly was overcome with grief, but Irene rescued him, promising that they would get through it together.
From that point forward, Powdly began listening to his heart and letting his faith lead him to help others. Though Powdly and Irene were never wealthy, Powdly invested what he could into savings bonds. Over the years, he has gifted more than $250,000 to help his community, and Children's has directly benefited from Powdly's generosity.
Plan a Charitable Gift Today
Take advantage of this tax-smart gift opportunity. Download our FREE guide Make the Most of Your Retirement Plan Assets: Avoid Double Taxation and Support Our Work.View My Guide