Naming Saint Andrew’s School as a primary or contingent beneficiary of a retirement plan (e.g. IRA, SEP, 401(k), 403(b), ESOP, etc.) benefits both you as the donor and Saint Andrew’s School. As with most planned gifts, gifts of retirement plans produce tax savings for the donor while being extremely beneficial to the school.
Saint Andrew’s School as a nonprofit institution is not subject to the income and estate taxes usually imposed when retirement plan assets are distributed. If plan assets are designated to an individual, the federal and state estate taxes imposed could result in a lose of up to 80%. Gifting a retirement plan can be a very effective tool to maximize the transfer of funds in the exact way intended.
The plan administrator of your retirement account (the company that manages the account) can help you designate Saint Andrew’s School as a primary or contingent beneficiary on the plan's beneficiary designation form. (Please send Saint Andrew’s a copy of this form for our records.)
On the “Change of Beneficiary Form,” list Saint Andrew’s School as receiving in full, a percentage of the plan along with another beneficiary, or as a contingent beneficiary. This means that if all other beneficiaries are deceased, the account passes to Saint Andrew’s. We encourage you to consider placing Saint Andrew’s as one of the primary beneficiaries.
A donor’s total combined charitable IRA rollover contributions cannot exceed $100,000 in any given year. Distributions can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are ineligible for the tax-free treatment. Donors cannot receive any goods or services in return for charitable IRA rollover contributions in order to qualify for tax-free treatment. In order to benefit from the tax-free treatment, donors must obtain written substantiation of each IRA rollover contribution from each recipient charity and must be 70½ or older at the time of gift. (Expandable List ends)
To name Saint Andrew’s School as a beneficiary, you will need to provide the following information on your beneficiary designation form:
Legal (Beneficiary) Name: Saint Andrew’s School of Boca Raton, Inc.
Location: 3900 Jog Road Boca Raton, FL 33434
Tax ID (EIN) Number: 59-0942383
Please remember to consult your financial planner and accountant for tax advice. If you have any questions about including Saint Andrew’s School in your estate plans, please contact Ronnie Bidder, Director of Major and Planned Gifts, or Lucas Metropulos, Major and Planned Giving Officer, at (561) 210-2060 or email us at: firstname.lastname@example.org.
By leaving a qualified retirement plan to a nonprofit and leaving more tax-advantaged assets to your heirs, you can protect your wealth, direct its future use, and leave generous legacies to family and charity. For example, an inherited home can be sold for its value at the owner’s date of death and the heirs pay no federal income or capital gains tax, although taxes will be due on any amount over the dated value. Stocks held outside a qualified account receive a step-up in cost basis to the value on the date of death, so heirs pay no capital gains tax on the stock's appreciation during the original owner’s lifetime.
The income tax burden to individual recipients can be reduced by leaving your heirs assets that have tax-free income (e.g., Roth IRA) or whose basis can be stepped up at your death (e.g., real estate or appreciated securities in a taxable account). On the other hand, by donating assets such as traditional IRAs and 401(k)s to a tax-exempt public charity, pre-tax monies can be received without paying income taxes.
A non-profit, independent, co-educational school for grades JK - 12, Saint Andrew's School is both a private day and boarding school located in Boca Raton, educating the best students from across Palm Beach County, Florida, the United States, and throughout the world in the Episcopal tradition.