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St. Jude holds a very special place in the Gignacs' hearts.
Learn how the Gignac's donated their retirement plan.

Lifetime Gift from a Retirement Account
(Gift Example)

The first example illustrates an outright gift from an IRA by a donor over age 70½.

The second example illustrates the costs and benefits of a withdrawal from an IRA by a donor younger than 70½, used to fund a life-income gift.

Example 1

You are 75 years old and your adjusted gross income will total $200,000 this year. Earlier in the year you contributed $100,000 to St. Jude Children's Research Hospital, so you have reached the limit (50 percent of adjusted gross income) on charitable gifts you can deduct this year.

You want to provide additional support for a St. Jude Children's Research Hospital program, so you direct a $100,000 payment from your IRA to us.

Here is a summary of the costs/benefits of making this gift:
Donor Individual, age 75
Withdrawal from IRA $100,000
Contribution $100,000
Income tax on withdrawal $0
Charitable deduction for withdrawal $0
Previous gift this year $100,000
Combined gift to us $200,000
Income tax on combined gift $0


Example 2

You are 65 years old. You withdraw $100,000 from an IRA and use it to create a Charitable Gift Annuity, making lifetime payments to you, and then paying the remaining balance to St. Jude Children's Research Hospital.

Here is a summary of the costs/benefits of making this gift:
Donor Individual, age 65
Withdrawal from IRA $100,000
Contribution $100,000
Current from IRA $3,000 (3%)
Annuity payment $6,000 (6%)
Tax-free portion ($2,949)
Tax on IRA withdrawal $35,000
Charitable deduction $41,311
Deduction tax savings @ 35% $14,459
Net tax cost of gift $20,541 ($35,000 - $14,459)
After-tax income from annuity $4,932 / year
Additional annual income $1,932 ($4,932 - $3,000)


For more information

E-mail us, complete the personal illustration form or call us at (800) 395-1087 so that we can assist you through every step of the process.


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