Retirement Assets
Growing in popularity, a gift of retirement assets (i.e., IRAs, 401(k), 403(b) accounts) to Hillel Yeshiva is a great way to fulfill your philanthropic objectives. By naming Hillel as a beneficiary of your retirement accounts, you can leave a wonderful legacy to help strengthen our students’ education. Determining the right plan for you depends on a number of factors including your age, income needs and financial objectives.
Benefits of Gifting Retirement Assets:
- Avoiding income tax; the income of the retirement asset will be taxed at the income tax rate of your beneficiaries
- Reducing or avoiding federal estate taxation
- Avoiding state inheritance tax (varies by state)
- Ability to name Hillel Yeshiva as a secondary beneficiary, leaving the bulk of your retirement assets to your family
To donors planning to make a gift from their retirement assets--as well as to the charities that stand to benefit--the new Pension Protection Act of 2006 presents a wonderful giving opportunity. Under the new act, IRA holders over the age of 70-1/2 can roll over up to $100,000 directly into public charities, including day schools, for the tax years 2007 and 2008. There is no income tax deduction, nor is the gift considered taxable income, though it is counted toward the donor's required distributions. Furthermore, with an IRA rollover to charity, there may be potential favorable tax benefits due to a lower adjusted gross income. The catch? The window of opportunity lasts only 15 months, until December 31, 2008.
Life Insurance
When making a life insurance gift to Hillel, you may contribute an existing life insurance policy that your family no longer needs or you may establish a new policy with Hillel Yeshiva named as owner and beneficiary.
When you give an existing policy, you may qualify for a charitable income tax deduction based upon the cash surrender value of the policy on the date of the contribution. For new policies, you may deduct the amount of your premium payment as long as it is provided directly to Hillel.
Benefits of Gifting Life Insurance:
- Advantageous tax deductions
- Ability to make a contribution without disturbing other assets
- Can be used to replace the value of assets or other property contributed to the school
Determining the right plan for you depends on a number of factors including your age, income needs and financial objectives.
For more information about this and other methods of giving to Hillel Yeshiva, please call the Marketing/Fundrasing office at 732-493-9300 x350.
Note: Hillel Yeshiva is an educational institution and does not provide tax, legal, or financial advice. Any document or information shared by our staff is intended to be educational. We strongly encourage all of our donors to seek counsel from their own legal and financial advisors. Please know that any information or documents shared by the development staff cannot be used to avoid tax related penalties.
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