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Cedar Lake Foundation

Make the Most of Your
Retirement Plan Assets

Avoid Taxation and Support Our Work

Did you know that retirement accounts are exposed to federal income taxes that could be as much as 37 percent upon your death? The good news is that these taxes can be eliminated or reduced through a carefully planned charitable gift.

Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to Cedar Lake Foundation to support our work. As a nonprofit organization, we are tax-exempt and will receive the full amount of what you designate to us from your plan. You can take advantage of this gift opportunity in several ways, illustrated on the following pages.

Retirement Plan Assets

3 Ways to Donate Your Retirement Account

1

List Cedar Lake as a beneficiary of your account.
The simplest way to leave the balance of a retirement account to Cedar Lake Foundation after your lifetime is to list Cedar Lake as the beneficiary on the form provided by your plan administrator. If you are married, your spouse must sign a written waiver.

2

Make Cedar Lake a contingent beneficiary.
If you prefer to make your spouse the primary beneficiary of your retirement account, you can name Cedar Lake Foundation as the contingent beneficiary. Want your children to benefit, too? Designate a specific amount for Cedar Lake with the remainder for your children.

3

Give from your IRA.
If you are 70½ years or older, you can give any amount up to $100,000 from your IRA directly to a qualified charity such as Cedar Lake Foundation without having to pay income taxes on the money. Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution.

Retirement Plan Assets

Example: Tax-Smart Planning

A longtime donor with a $1.5 million estate wants to leave Cedar Lake Foundation a gift valued at $750,000. They also want to leave something to their only daughter who is in the 32 percent federal income tax bracket. Take a look at the options.

Option 1: Our donor divides assets equally between the daughter and Cedar Lake.

Daughter Us
IRA $375,000 $375,000
Other assets (house, securities, cash) $375,000 $375,000
Federal income tax owed ($120,000) ($0)
Net amount to beneficiary after taxes $630,000 $750,000

Option 2: Our donor names Cedar Lake the beneficiary of retirement plan assets and leaves the daughter all other assets.

Daughter Us
IRA $0 $750,000
Other assets (house, securities, cash) $750,000 $0
Federal income tax owed ($0) ($0)
Net amount to beneficiary after taxes $750,000 $750,000
Retirement Plan Assets

Next Steps

For more information, please seek guidance from an estate planning attorney, a CPA or other tax professional. We would be happy to answer any questions regarding charitable giving that you or your advisors may have. Feel free to contact us at no obligation.

Kathey Golightly Sanders
Executive Director, Cedar Lake Foundation
Phone: 502.495.4942
Fax: 502.326.0092
Email: ksanders@cedarlake.org
9505 Williamsburg Plaza, Suite 200
Louisville, KY 40222

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Retirement Plan Assets

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Someone from Cedar Lake Foundation will be in contact with you soon. If you need to speak to us immediately, please call us at 502.495.4942.