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A Lifetime of Giving!

Change Your IRA to an ORA

Many friends of Sacred Heart Southern Missions have created Individual Retirement Accounts (IRA) as they planned for their future needs. Not too long ago, most people in the workforce could count on a pension from their employer; with confidence, they could count on that steady stream of income. But things changed.

Companies stopped their pension programs and encouraged their employees to fund 401k accounts (or the like). Creating an Individual Retirement Account became the option of choice for many, with withdrawals beginning no later than age 70½.

Unfortunately, IRA funds that remain can be highly taxed at death.

But there are a couple of solutions to help avoid this trap, and by doing so you could transform your IRA to an ORA (“Our Retirement Account”).

Solution One

Make your favorite charity, such as Sacred Heart Southern Missions, the full or partial beneficiary of that account and leave less tax-burdened assets such as appreciated securities to loved ones. Sacred Heart would not have to pay tax on this gift and heirs could enjoy, as in the example of appreciated securities, a “step up” in basis, which essentially wipes out the tax on the capital gain incurred prior to death.

Solution Two

If you are age 70½ or older, you can direct a portion or all of your IRA's required minimum distribution, up to $100,000, to Sacred Heart Southern Missions. The gift must come directly to Sacred Heart from the custodian of the account and the gift cannot be used to fund a life-income instrument, such as a charitable gift annuity. Although you would not be entitled to a charitable tax deduction for this gift, it can count as part or all of your required distribution for the year. Making a gift this way may even place you in a lower tax bracket, which could be an an attractive option for those who do not itemize on their tax returns.

To learn more, please contact our Director of Donor Relations Steve Koepke at 888.217.4829 or you can email Steve at: skoepke@shsm.org


Steve Koepke