The IRA Rescue Plan®

You may be looking to transfer some or all of your IRA to your children now or later. Unfortunately, taxable Required Minimum Distributions (RMDs) start at age 70 ½, and continue for the rest of your life. Coupled with income tax at death, your IRA could lose as much as 50% of it’s value by the time it reaches your children! The IRA Rescue Plan® may offer a solution that will benefit both your family and Moravian University.

IRA rescue plan

Benefits of an IRA Rescue Plan®

  • Reduce the taxes on your IRA over your lifetime by up to 80%
  • Increase the amount your family would receive from your IRA by 200% or more
  • Valuable dollars normally paid in taxes can be re-routed to Moravian University creating your charitable legacy

How an IRA Rescue Plan® Works

  1. You transfer cash or assets from your IRA to fund a 10-year term Charitable Remainder Annuity Trust.
  2. You receive an income tax deduction in the year you transfer assets to the trust.
  3. The IRA transfer is a taxable event, but the income tax deduction reduces the tax by more than half.
  4. The trust is invested to pay fixed income to you (or any other trust beneficiaries you select) over the next ten years.
  5. Moravian University benefits from what remains in the trust at the end of the 10th year.
  6. You can spend or invest the income you receive from the trust any way you choose, or you may use some or all of it to purchase wealth replacement life insurance for your children. The use of funds in this manner may substantially exceed your current IRA value and replace the gift to Moravian University. An extra benefit is that, when designed properly, the insurance cash value and proceeds are income tax-free.

 

More on the IRA Rescue Plan®

  • Your IRA Rescue Plan® is custom designed to fit your specific needs and goals.
  • You can choose a Traditional version with trust replacement at your death, or a Stretch version where your trust income funds individual wealth building accounts for your children.
  • Your IRA Rescue Plan® is transparent, safe, effective, organized, and complete. Everything from custom design to implementation to ongoing management is done for you.

Contact Us

If you would like to see some examples of how an IRA Rescue Plan® works at different ages, or to request additional information, please contact Jill Anderson, Vice President for Development and Alumni Engagement, at 610-625-7910 or andersonj@moravian.edu.