Prayerfully consider making Forest Home a full or partial beneficiary of your IRA, 401(k), 403(b), pension or other tax-deferred retirement plan. You may be surprised to learn that the IRS could tax up to almost 40% of your retirement funds when passed on to your children.For estates subject to the estate tax, up to 60%-70% of your retirement plan could be taxed when passed on to your children.
Fortunately, since Forest Home is a charity, we are not taxed upon receiving IRA or other retirement plan assets.Therefore, if you have a vision to share the life-changing power of the Gospel at Forest Home, using retirement assets to make a gift to Forest Home, and leaving other appreciated assets, such as real estate and stocks, to your children often enables you to give more to your children and pay less in taxes.
If you have $1,000,000 in an IRA and $1,000,000 in appreciated stock, your children could receive more from the gift of stock than from the IRA.
