IRA 401k Charitable Donations

We all know how important it is to put aside savings to$5,000.00 in cash you would be wise to designate your
be left behind for our loved ones as well as a charityfavorite charitable organization as your beneficiary and
that we believe in after we have passed on. Whileleave your cash to your family. If your family remains a
taxes have to be paid on the money that is left to thebeneficiary to your IRA they will be required to pay
individuals we name, charitable donations are nowtaxes on that money. This is a great way of ensuring
exempt from paying taxes on the property or moniesthat the money and assets you worked so hard all
they receive. The government understands that whenyour life to attain will be enjoyed to it full financial limit.
we give a donation to a charitable organization itBoth your loved ones and the government benefit
increases their potential to carry on the work they do.from this way of organizing your savings. Your family
This added revenue places them in a better financialwill be able to receive the full amount you intended for
position and in turn decreases the likelihood that theythem and the government's burden in having to
will need government funds thus saving taxpayersupport charities will be greatly lessened.
money.Many retired couples have worked all their lives for
Many people find themselves in a position of notcompanies where they were able to accumulate a
having dependents or family members to leave theirsizable 401(k) plan [ What if both spouses had very
estate to. Still others may have immediate family thatgood salaries and they were able to put aside money
are in a financial position where they don't need anin other retirement plans and upon reaching 70 1/2
inheritance to meet their day to day needs. Wouldn't ityears of age did not need the minimum required
be nice if in such cases you could be assured thatdistributions they were forced to take each year? In
taxes would not have to be paid on the money orsuch cases you must pay taxes on these withdrawals
property you leave behind? In today's uncertaineven if you do not need the income.
economic times charities are finding it increasinglyWith the existing provisions made by the government
difficult to secure enough donations to allow them topeople are now free to leave funds to their favorite
continue important research or to take care of thecharity and know that so much of the money the
needs of the most vulnerable in our society.charitable organization receives will not be lost by
In cases where a person has both cash and money inhaving to pay taxes on it. It's very important to review
an IRA they can now make certain that no one willyour will and make the necessary changes that will
have to pay taxes on what they leave behind afterenable your loved ones and the charities you believe in
their death. If you had $5,000.00 in an IRA as well asto receive the full benefit of your estate.