INJURED - Shepherd Center

FOUNDATION
The 7th floor terrace atop the Jane Woodruff
Pavilion at Shepherd Center boasts a
panoramic view of Atlanta's north side. The
terrace was made possible by a gift from
James B. Miller and his late wife Katrina.
Photo by Leita Cowart
Notes from
Scott Sikes
Shepherd Center Foundation
Executive Director
Tax-Wise Deferred Giving Through
Your Retirement Accounts?
Happy New Year! The month of January is named for the Roman
mythological god Janus with one head – yet with two faces – one face
looking forward and another looking backward. January is traditionally
a time for each of us to look back and to look ahead. Another year is
behind us with its own unique triumphs and tribulations. Hopefully,
many healthy and happy years lie ahead of us.
Many of us have spent (or will spend) years accumulating various
kinds of retirement accounts. Retirement accounts [IRA, 401(k), 403(b),
etc.] are the largest asset holdings for many individuals.
Using a small portion or all of a retirement account may be the most
“tax-wise” way to make deferred gifts to your favorite charitable organizations
– including the Shepherd Center Foundation. Deferred gifts,
or planned gifts, are gifts you arrange now that do not take effect until
some point in the future.
Contrary to what many people think, retirement accounts DO NOT
pass via will (unless payable to the estate) or trust, but rather by whom
is listed on the beneficiary designation form (irrevocable when the plan
owner dies). Here are a few points to consider:
Avoid Taxes
• Retirement account funds grow tax-deferred until the time of
withdrawal.
• Retirement accounts and deferred compensation plans are the most
expensive assets family members can inherit because of potentially
heavy retirement plan taxation.
• Funds remaining in retirement accounts at death can be subject to
both state and federal income and estate taxes, which can erode a
majority of the plan’s value – in some cases up to 80 percent.
Make a Lasting Gift
• Consider using these “expensive” assets to make charitable gifts, which
do not take effect until your death.
• It is much easier to change the beneficiary designation on your retirement
account than to change your will. The designation can be changed
at any time by completing a beneficiary designation form and sending it
back to the plan administrator at the company holding the plan.
• More than one charity can be named beneficiary of a retirement account,
or you can designate a specific percentage to be left to a charity
or charities (better than designating a specific dollar amount because
the plan’s value will fluctuate).
• Using retirement account assets to make charitable gifts from one’s
estate can result in more total assets passing on to your heirs.
• It’s one of the easiest and best ways to become a Bridge Builder –
Shepherd Center’s planned giving recognition society.
Of course, this brief article does not constitute legal, tax, investment,
insurance, retirement or other financial advice. Please discuss your individual
situation with your professional adviser(s) together with me and/
or one of our Planned Giving officers: Scott Sikes, MBA, CFRE, CFP®
at 404-350-7305 or scott_sikes@shepherd.org, J. Tyler “Ty” Tippett,
esq., at 404-350-7308 or ty_tippett@shepherd.org, Ms. Laurence Moore
at 404-350-7301 or laurence_moore@shepherd.org.
30 Spinal column