GIVING THROUGH RETIREMENT PLANS...

Lifetime Security
Over the past 30 years or so, it has been increasingly important to make appropriate plans for life after 60… your retirement years. People are living longer, more active lives and disposable income has been squeezed to the maximum. Retirement plans are no longer an option but rather a requirement if one expects to find any degree of security and enjoyment in later years.

Our government likewise has seen the need for encouraging retirement plans by offering many tax advantages to provide for your own future. 401(K)'s, 403(B)'s, ROTH's, KEOGH'S, and other plans supply security in our old age.

As we are all too aware, the problem is that we die. And these plans now become a part of our total estate which possibly could be subject to estate taxes. When combined with other assets that we own, the total value of one's estate may now be worth more than the threshold exemption amount provided by Congress. As much as 40% in taxes may be due from one's heirs depending on State taxes and other factors. Certainly, a consideration that should be acknowledged and faced by each of us.

The highest degree of taxation will gradually rise over the next few years. The table shown demonstrates those figures

Planning can minimize the problem created by lifetime of earning and accumulation., Rather than see one's lifetime estate dismantled in tax consequences, individuals can personally direct retirement funds toward charitable entities. These contributions are fully deductible from your estate as gifts to the STC High School Endowment Fund or Hastings Catholic Schools Trust (Stonazek).

The Hastings Catholic School Development Office has professional advisors available to help you with your financial plans. Their personal dictation to our Catholic School system is their incentive to provide you with the most up-to-date information and expertise available.

Retirement Plan Giving may then be as simple as asking your Plan Administrator for a Change of Beneficiary form thereby indicating the percentage of assets you choose to be dispersed toward the Hastings Catholic School, System, or your local parish.

Your personal goal would be to:
Care for your spouse and loved ones.
Consider your charitable organizations.
Reduce taxes payable to a minimum.

EXAMPLE:
Mr Michael Victor Troutrnan, 62, has decided to retire following some recent leg surgery. Having raised and educated 5 children, successfully operated his own small business for 30 years, he wants to simplify his life, explore some unknown lakes and relax.

Personal savings and investments have enabled him to do so. His business continues to thrive and is debt-free. He recently paid off his home after 30 years. His children are scattered through the U.S.

Mr. Troutman's wholesale supply house sells for $1,000,000. Personal invest- valued at $250,000 and his retirement plan, 401 (k), is worth $175,000. Other assets and personal items (auto, jewelry, art, etc.) amount to $100,000. Mr. Troutman's total estimated estate is $1,625,000.

Mr. Troutman elects to donate his entire Retirement Plan to a variety of charitable organizations at his death by naming them as the beneficiaries. He designates a percentage for each and is able to assist any number of people.

By naming charities as the beneficiaries of his retirement account the entire value of the account is not included in Mr. Troutman's Estate, resulting in an Estate tax savings to the family of approximately $65,000. In addition, if the beneficiaries were his 5 children, they would have to pay income tax when they receive the money - the charity pays no income tax. This potentially would result in an additional savings to the family of approximately $60,000.

Bottom line is Mr Troutman has made a very generous gift to charity at very minimal cost to his heirs, but at a substantial cost to Uncle Sam - --that's OK.


To summarize

	HASTINGS CATHOLIC SCHOOLS  DEVELOPMENT OFFICE 111 North Burlington Avenue Hastings, NE 68901 402-462-6566 Tax Identification Number: 36-3336517