Individual Retirement Accounts
Many families have accumulated sizable assets in their IRAs, which they plan to pass on to their children. The reality is that ordinary income taxes and estate taxes devour the majority of an IRA's benefits before they ever reach the children. The owner of an IRA can easily indicate Creighton Preparatory School as the death beneficiary for part or all of their IRA. This is a simple transaction which does not require involvement of the donor's attorney.
If you receive a distribution of $1.00 from your IRA, it is taxable income to you. If you are in a combined Federal and State rate of 25%, you would have $.75 left. If you request that your Plan Administrator distribute that same $1.00 to Prep, it is not included in your taxable income and Prep gets the use and benefit of the entire $1.00! It’s like making a gift of $1.00 at the cost of $.75.
Contact your Plan Administrator now to make your tax-free distribution. Contact the Advancement Office at firstname.lastname@example.org on 402-548-6218 for more information.