What is a Retirement Gift?
A gift through your retirement account is a simple and easy way to provide a legacy gift while retaining control of your life assets during your life.
Advantages to Retirement Gifts
- An easy and simple way to make a gift
- No cost to you, yet gives you the satisfaction of providing for Hesston College
- You continue to receive distributions from your retirement account as you need them
- You may modify the beneficiary if your circumstances change
- Gifts to Hesston College from your estate are exempt from estate taxes
If you let Hesston know of your plans, you will become a Legacy Partner
Why a Retirement Account Gift?
Retirement accounts are often an overlooked giving tool and can be one of the heaviest taxed assets in your estate. This gift allows you to retain control of the account while continuing to make withdrawals as needed. This is a flexible and easy way to make a charitable gift that can have benefits for you and your estate. By naming Hesston College as beneficiary of your retirement account you have the joy of knowing you have provided for the college and students for generations to come.
Ease of Giving
Naming Hesston College as a beneficiary of your retirement account is a simple and easy process. Normally, it is as easy as contacting your human resources office or the company who controls your retirement plan and asking for a Change of Beneficiary form. You can list Hesston College as the sole beneficiary (we receive the full remainder), a joint beneficiary with another loved one (we receive part of the remainder), or a contingent beneficiary (we receive the remainder only if your primary beneficiary predeceases you). Each option gives you the peace of mind in knowing that you have helped to provide the Hesston Experience and a Christ-centered education for years to come.
Charitable IRA Rollover
A Charitable IRA Rollover, also known as a Qualified Charitable Distribution (QCD), is a special federal tax provision. This allows donors age 72 (70 ½ if you turned 70 ½ in 2019) and older to exclude their IRA distribution from taxable income when donating to certain charities such as Hesston College. Your distribution will even count toward your required minimum distribution (RMD) if you wish.
Did you know that retirement plans and IRAs can be among the most highly taxed assets in your estate? Once you factor in the income tax on distributions, possible estate taxes and generation-skipping transfer taxes, the total tax bill for your heirs could exceed 70%. By considering a charitable IRA Rollover to Hesston College you can avoid some or all of these taxes.
If you would like to make an IRA Rollover gift, your first step would be contacting your IRA administrator to see if they require the use of a company form or if a letter will suffice. If they just need a letter to make the distribution you can contact Hesston for a sample letter.
Rules and Requirements
- You must be 72 years of age when the gift is made (or 70 ½ in 2019)
- The gift must be made directly from the IRA Administrator to Hesston College
- IRA distributions cannot exceed $100,000 per person in a given year
- A Charitable IRA Rollover can only be an outright gift, it cannot be used to fund a Gift Annuity or Trust
- A Charitable IRA Rollover can count towards a pledge payment
- A Charitable IRA Rollover can count as a Required Minimum Distribution (RMD)
- Only IRA or Roth IRA accounts qualify, 401(k) and 403(b) accounts are not eligible
Advantages to IRA Rollovers
- You receive a tax benefit without having to itemize your taxes
- Does not count against the usual percentage limitations on using charitable deductions on your taxes
- A simple and easy way to give a gift