DESIGNATING ZION AS A BENEFICIARY OF YOUR IRA RETIREMENT PLAN
If you are considering leaving a bequest to Zion’s endowment as part of your estate planning, and you have an IRA Account, you may want to consider naming Zion as a beneficiary of your IRA instead. The deposits you made into your IRA or Corporate Retirement plan went in PRE-TAX, which means when they come out they are taxable, unless you have already completed a Roth conversion. What this means if you named your children as the beneficiaries of your IRA or your Retirement plan, or even your spouse, the distributions out of your plan or IRA are taxable as ordinary income to your children or your spouse. If you have Life Insurance, investments or assets in your name, they are distributed out on a POST TAX basis, with no current income tax due. Zion is a non-taxable entity, so distributions made to Zion carry NO TAX LIABILITY. So unlike distributions to children or spouses, Zion would get to keep the full amount designated, not reduced by any tax liability. Stocks, real estate, or other assets are valued at the date of death, and if they have appreciated while you owned them, that appreciation is forgiven upon inheritance, something very valuable to your survivors. So if you have an IRA or corporate retirement plans and are considering making a bequest to Zion, designate Zion as your beneficiary and let your surviving family members inherit your non-retirement assets without an income tax liability.
ENDOWMENT SUNDAYS FOR 2017:
The three Endowment Sundays for 2017 will be:
May 14th – Mother’s Day
June 18th – Father’s Day
November 5th – All Saints Day
Please contact any member of the Endowment Committee (Geof Close, Ted Jermansen and Rick Schroeder) if you have any questions!
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