Retirement Plan Assets

How it Works

 

  • ​​​Name the Incarnate Word Academy Foundation as beneficiary of your IRA, 401(k),   or other qualified plan.

  • The balance in your plan benefits the school after your passing.


Benefits

 

  • ​You avoid the double taxation your retirement savings would incur if you designated an heir as beneficiary.

  • You continue to take regular lifetime withdrawals.

  • You retain the right to revoke the beneficiary designation if your family's needs change.

  • If the largest asset in your estate is a retirement plan, such as a 401(k), IRA, or Keogh, you  may be surprised to learn that the IRS will impose income tax on the remaining balance in  the account if you designate it to a beneficiary other than your spouse.

  • This tax is in addition to any estate tax that may be imposed on the account. For estates fully subject to the estate tax, the result can be that up to 80 percent of the value of your retirement plan will be consumed in taxes before your child, relative, or friend receives it.    

 

There is a sensible charitable alternative:

 

Name the Incarnate Word Academy Foundation as the beneficiary of your retirement plan, and then use other assets not subject to income tax to make gifts to your heirs. The Incarnate Word Academy Foundation, as a qualified charitable organization, won't pay income tax on the distribution from your plan, and your heirs will receive their share of your estate from other assets without the burden of extra taxes.

A gift from your retirement account is for you if:

 

  • You hold a 401(k), IRA, or other retirement plan.

  • You prefer to make a gift to the Incarnate Word Academy Foundation through your estate plan.

  • You want to balance your family's needs with your charitable goals in your estate plan.

  • You want to ensure the most efficient distribution of the assets in your estate.

 

​Please contact the IWA Advancement Office at (361) 883-8229 or Sister Martha Ann Snapka
at (361) 877-1232 so that we can assist you through every step of the process.