At a glance • Understand the facets of an IRA charitable rollover • Learn how gift annuities guarantee income during retirement years • Beat capital gains with a unitrust
SPRING 2024
Prepared for the Friends of Christian Appalachian Project Thoughts about our “golden years” are changing. This is a new phase, a time to do things you’ve always wanted, and an opportunity to redefine your priorities.
Financial experts agree that retirees will need at least 70% of their pre-retirement income in savings. Social Security benefits may offer a retirement income base but will not likely provide a fully-funded retirement. Therefore, it is important to heed the advice of investment experts to save 10-15% of pre-tax income and take advantage of tax-deferred opportunities.
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Many people who have earned income take advantage of Individual Retirement Accounts (IRAs). There are two types of IRAs. The traditional IRA, which allows both tax-deductible and non-tax-deductible contributions. In either case, all earnings accrue tax-deferred, but upon withdrawal will be taxed as ordinary income. Secondly, there is the Roth IRA, which contributions are not tax deductible but “qualified” withdrawals from the account are taxable. Annual contribution limits are $7,000 for those under 50 and $8,000 for those 50 or older.
Significant advantages exist in giving or bequeathing funds to charitable institutions.” Retirement may provide you with more time and ability to support charitable causes. There are several options for giving in retirement while also reducing tax burdens.
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