By Sr. Laura Goedken
Even though the IRA rollover gift option is off the table for now, it is reasonable for many of you to make a gift from your retirement plan either now or in your estate plan.
An individual over the age of 59 ½ can withdraw from his/her retirement plan without penalty, make a gift to a qualified charity with these funds and then claim an offsetting deduction. In most cases, this gift will be a “wash” for tax purposes.
Donors can make a meaningful gift in their estate plan by naming a qualified charity as the beneficiary of their retirement plan. This type of gift is easy to execute and does not require making any changes to your will or living trust. The charity could be the primary or contingent beneficiary for the entire retirement plan or a percentage of the funds. You will need to obtain the necessary form from the company that holds your retirement plan. Such a gift will transfer tax free; if you left this for your family, they would pay taxes on this gift.
Qualified charities include your parish, local Catholic school, the Catholic Foundation for the Diocese of Davenport and the Annual Diocesan Appeal for the Diocese. For more information, feel free to contact Sister Laura Goedken, OP, director of development for the Diocese of Davenport, at Goedken@davenportdiocese.org or (563) 888-4252.