Retirement Assets: Making Them Last

Whether you are already retired or perhaps looking forward to its arrival, financial and estate planning have become more critical than ever with the volatility of the stock market and our ever-changing tax laws.

Much of your accumulated wealth is likely in some form of retirement plan — an employer’s pension profit-sharing plan, a Keogh plan if you are self-employed, or perhaps a salary deferral plan such as a 401(k) or 403(b). In addition, you may also have one or more traditional IRAs. All of these plans offer tremendous opportunities for growth because the amounts in such plans generally are not subject to income taxation until the funds are withdrawn.

Think about it – these contributions are deductible or excludable from your gross income! They are earnings that are not currently taxed! Unquestionably, these tax incentives encourage saving. But the tax picture is by no means as rosy as it initially appears. When you or your heirs take distributions from your retirement account, taxes must be paid on that retirement wealth.

In this issue, we will look at how those “hidden taxes” can severely deplete your retirement accumulation. It may be surprising to see what appears to be a wise investment can wind up providing much less than you were counting on. We will also look at how wise charitable gift planning can help minimize your total tax burden while enabling you to fulfill your philanthropic objectives and help organizations like the Alliance Defense Fund (ADF). Our dear Ministry Friend, Brenna Lawrence has done just that.  She has chosen to support our work by naming ADF as a beneficiary of her retirement assets – thank you very much, Brenna. Read her story by clicking here.

Blessings in Christ,

Lisa Reschetnikow, Esq.
Vice President
Gift Planning and Foundations
Alliance Defense Fund
lreschetnikow@telladf.org
(480) 444-0020