EFSC Foundation Newsletter May 2017 | Page 6

Donating Retirement Plans to a Charity

Donating retirement accounts to charity can be an easy and financially beneficial strategy for you and the charity. Many people feel they do not have enough assets at death to leave to a charity they supported during their lifetime and also sufficiently provide for their family or other beneficiaries.

Ganon J. Studenberg J. D., LL. M., AEP Studenberg Law

There are two tax savings benefits to naming a charity as a beneficiary of your retirement plan accounts. Retirement accounts such an IRA, 401( k) and 403( b) are subject to income taxes and federal estate taxes. When a charity receives these funds it will not pay income taxes and the benefits paid to the charity will not be subject to estate taxes because of the charitable deduction.

The tax savings to a charity is significant when compared to an individual receiving the same funds.

When a retirement account is left to an individual it first may be subject to federal estate taxes( 40 % for gross estates exceeding $ 5.49 million). Secondly, as distributions are made to the individual beneficiary it is subject to income taxes. Only a small portion of the retirement account is ultimately left to the individual beneficiary due to these two taxes. On the other hand, the charity will receive the retirement account 100 % tax free! Instead, consider leaving other more favorable taxed assets to your family or other beneficiaries.

An additional benefit of designating a charity as a beneficiary of a retirement account is that they receive the funds immediately and are not subject to probate or further estate administration expenses and involvement. Leaving retirement accounts to a charity is also easy for the donor. The donor simply completes and files a beneficiary designation form with the financial institution. As with all planning, be sure to work closely with your financial and legal advisors.

Please call the Foundation office for further details at 321-433-7055.

Hilton Rialto Place EFSC

Host Hotel

An EFSC Foundation supporter, The Melbourne

Hilton Rialto Place is Eastern Florida State College’ s official“ Host Hotel.”

On behalf of the college, the hotel will be hosting the Florida College System Council of Business Affairs( COBA) Conference in May, 2017. Seventy-Five business executives from the state’ s 28 Florida College System schools will be in attendance.

The Hilton supports matching gift scholarships for students such as Dream Makers, Helios and other awards. Besides supporting the Foundation financially, the Melbourne Hilton offers reduced rates for EFSC students, staff and faculty and visiting family members just in time for graduation.

This newly-renovated, upscale hotel is the perfect place to host EFSC guests, meetings and other special events. Thank you Melbourne Hilton Rialto Place!

Find out more at www3. hilton. com / en / hotels / florida / hilton-melbourne-rialto-place-MLBMHHF / index. html

“ I have for years supported EFSC( formerly BCC), and I am pleased to make this pledge to Eastern Florida State College as I know it will benefit the college and students who attend for years to come.”

Bernie W. Simpkins