Gifts of Retirement Plans
When you name the Jewish Federation and/or Jewish United Fund of Metropolitan Chicago as a beneficiary of your Individual Retirement Account (“IRA”), you are leaving a legacy that will secure the future of the Jewish community and may reduce taxes paid by your heirs.
Gifting IRAs Saves Taxes
Currently, retirement plan assets are subject to two taxes payable upon death: income tax and estate tax. This means if your estate is greater than the estate tax exemption amount, currently $2 million, up to 80% of your IRA or other retirement plan assets may go to the IRS upon your death.
Through careful planning, there is a way to minimize estate and income taxes on IRAs and other retirement plan assets. You can take control of where your funds will go.
Planning Your IRA legacy
Contact your IRA or plan administrator for a beneficiary designation form and let them know you would like to name the Jewish Federation or Jewish United Fund of Metropolitan Chicago as a primary beneficiary. The suggested language is as follows:
The ______% beneficiary of my retirement account is the Jewish Federation or Jewish United Fund of Metropolitan Chicago.
Special note: If the plan holder has a surviving spouse, a written waiver is necessary.