Gifts of Life Insurance and Retirement Plan Assets
Gift of Life Insurance
Life insurance is an asset that can be used to make a charitable gift to the American Pain Foundation. APF may simply be named as the beneficiary of a life insurance policy, with benefits given to APF after the donor’s death. Alternatively, APF may be named the owner and beneficiary of the donor’s paid-up whole life policy. APF will cash in the policy to redeem its cash value. The donor will be eligible for a federal income tax deduction in the amount of his/her cost basis in the insurance policy.
Gift of Retirement Plans
Every year, Americans transfer millions of dollars into IRAs, 401(k)s, 403(b)s, and other traditional qualified retirement plans. The funds in these plans enjoy tax deferral on both contributions and earnings during the participant’s lifetime. This enables these funds to grow much more rapidly than savings or investments that are taxed currently.
Retirement assets can be subject to multiple levels of taxation. The combination of federal income, estate and excise taxes can seriously erode the value of retirement savings. The law requires that certain minimum distributions be made from retirement accounts after the individual attains age 70 ½. Failure to take the required amount can result in a 50% penalty tax on the undistributed amount.
If you die before you have taken most of your distributions from your IRA, 401(k), Keogh, SEP, or other qualified retirement plan, the balance remaining in your plan can be subject to taxes that can claim 75% or more of its value.
If you name an individual other than your legal spouse as beneficiary of your retirement plan assets, he or she may receive as little as 20 cents on the dollar after income and estate taxes are paid. If, however, these assets are donated to the American Pain Foundation, all related taxes may be avoided and you will have the satisfaction that you are making a long-term gift to the American Pain Foundation to eliminate the undertreatment of pain and pain related suffering in America. To name APF as beneficiary of retirement plan assets, contact your plan administrator and request a change of beneficiary designation form.
If you would like more information about any of these options, please contact:
Michael W. DeVito
Director of Philanthropy
American Pain Foundation
201 N. Charles Street, Suite 710
Baltimore, MD 21201-4111
Toll Free Telephone:
1-888-615-PAIN (7246)
Telephone:
(410) 783-7292, ext. 305 (Voice)
(410) 385-1832 (Fax)
Email: donate@painfoundation.org
We recommend that you consult with your attorney or tax advisor for the various tax benefits and restrictions that may apply to your specific situation. We are available to help you answer general questions or help arrange a planned gift to the American Pain Foundation. APF’s future work to eliminate the undertreatment of pain and pain related suffering depends on the partnerships we form today. Thank you!
