Plan now, give later with IRA beneficiary designation

For donors like Susan and Doug, generosity is a story of who you meet along the way. For starters, the couple met in high school and has been together more than 50 years.

Doug credits a mentor he met years ago while volunteering with his local United Way for introducing the concept of giving 10%, saving 10% and spending 80% of their paychecks. It became a guiding principle Susan and Doug passed along to their children.

Part of Doug’s career in management for a national family-owned business involved strategizing with the owners on financial decisions intended to benefit future generations. He says, “We talked regularly about what they wanted for the business when someone died. Those conversations made me think about my life.”

Over the years, the couple shared blessings of time and money with their church and community. “Everyone has a story,” Susan says. “If we can help people we meet going through the ups and downs of life, it’s what we want to do.”

Making dreams a reality

Now in retirement, the couple wanted to give shape to their dreams for the rest of their lives and beyond.

“One of our passions is to split inheritance in thirds – for our two children and charity,” Doug says. They called on their Thrivent financial advisor for help finding a solution. “This stuff doesn’t happen unless you work on it purposefully.”

Their advisor recommended the couple name Thrivent Charitable as beneficiary of their IRA since they won’t need IRA distributions for living expenses in retirement. It’s a straightforward process enabling donors to bypass their trust.

How it works

• You create a fund at Thrivent Charitable.
• You designate Thrivent Charitable as beneficiary of all or a portion of an IRA, tax-sheltered annuity, 401(k) or 403(b) plan.
• At your death, assets are directed to a charitable fund benefiting charities meaningful to you.
• Your family benefits from tax advantages because beneficiary proceeds directed to charity are not subject to income or estate taxes. 

“When you bypass taxes, it can mean you’re giving more money to charities," Doug says.

Involving family in their legacy means more than just the tax advantages. “It’s exciting to think about our kids and grandkids helping make decisions about who receives these gifts,” he says.

Learn more

Learn more about giving beneficiary proceeds. If giving an estate later is an approach you want to know more about, consider including bequests in your plan. This video explains both concepts.

To get started with a plan that’s right for you, consult with your Thrivent financial advisor or contact our Charitable Giving Services team.