The Perfect Charitable Gift: Unused Retirement Funds
The late Rev. Stephen J. Duffy cared deeply about Loyola and its mission. That is why this longtime faculty member designated Loyola as a beneficiary of his retirement fund. Thanks to Father Duffy's generous gift, an endowment of more than $1.3 million will be used by the Department of Religious Studies to support a Chair of Roman Catholic Systematic Theology.
If Father Duffy left his retirement asset to a noncharitable beneficiary, it would have resulted in a substantial portion of the gift going to the IRS. During Father Duffy's life, all the contributions to his retirement fund, both his and his employer's, were in pre-tax dollars. Upon his death, any distributions from the retirement assets to noncharitable beneficiaries are subject to income tax. If Father Duffy's estate was subject to the federal estate tax, that tax would have further reduced the amount going to any noncharitable beneficiaries. This amounts to a potential double taxation of the retirement assets.
Making Loyola a beneficiary of your retirement assets will allow the death benefit passing to our organization to pass free of any income tax obligation and will qualify for the estate tax charitable deduction.
To learn more about the advantages of using retirement funds for your philanthropic goals, contact Monique Gaudin Gardner at 504-861-5442 or kmaney@loyno.edu.
To learn about other ways to support Loyola's mission, click here.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.