If you would like to acomplish any of the following with your retirement accounts, you may wish to consider directing a portion of your retirement assets to Save the Children:

• Provide for your heirs and make a contribution to Save the Children;
• Minimize the tax consequences of your designations;
• Leave a legacy in a tax-efficient way;
• Make good use of retirement assets that many no longer be needed by your family.

What are retirement assets?
The term “retirement assets” refers to savings you accumulate over the years, often through regular payroll contributions in employer-sponsored programs known by their Internal Revenue Code Sections, such as 401(k), 403(b), and 457 Plans. You may also accumulate retirement assets through other kinds of plans, such as annuities, profit-sharing plans, defined benefit plans, deferred compensation plans, Individual Retirement Accounts (IRAs), Simplified Employee Pensions (SEP), and Keogh plans.

How and when are retirement assets taxed?
When you begin to access your retirement assets, the distributions must be taxed as ordinary income. The Internal Revenue Code requires you to start making withdrawals from many retirement savings plans at age 70 ½. Minimum annual withdrawal requirements may mean that the savings will be exhausted at or prior to your estimated date of death.

How can these tax-deferred retirement assets cause painful tax shocks?
If you should die before exhausting your retirement assets and the retirement assets flow to an individual, the income tax liability remains and in some cases, the income taxes are due immediately and at the highest income tax rates! Even your spouse will be liable for income taxes on distributions from your retirement plans after you die

Can these often unintended tax consequences be avoided?
Yes! Wills can be drawn and beneficiary designations can be made to avoid both the income and estate taxes on retirement assets, and to create an important charitable gift to Save the Children. Save the Children is not required to pay income taxes on retirement assets directed to us, and your estate will receive a deduction for the full value of your charitable contribution. By designating retirement assets to Save the Children and bequeathing other assets to family members, you can make a significant contribution at greatly reduced cost to your heirs.