Ira’s and Other Qualified Plans

If you wish to defer your charitable gifts until the time of death, the best assets to use may be your IRAs, employer-sponsored retirement plans, annuities or other assets upon which income tax has been deferred. By using such assets for charitable gifts, the accrued income tax liability is avoided. The easiest way to donate your IRAs or qualified plan balances to Memphis Athletics at the time of death is simply to name Memphis Athletics on a beneficiary designation form provided by the IRA custodian or retirement plan administrator. IRA roll-overs are also an excellent option at the age of 70 ½.

            IRA example: Mr. Tiger wishes to leave his estate to his children and to Memphis Athletics. He has $250,000 in securities and $250,000 in an IRA. Naming Memphis Athletics as the beneficiary of the IRA and leaving the securities to his children is an excellent strategy. Because of the athletic department’s tax-exempt status, the IRA passes to Memphis Athletics without tax. By the same token, his children will receive the value of the securities-thus providing them with the greatest net outcome. This gift method avoids both estate and income taxes and provides a charitable deduction.