Gifts that Reduce Taxes

Gifts that Reduce Taxes

Some gifts made to Moffitt can have substantial tax savings.

You can reduce or even eliminate tax liabilities on your retirement plan by naming Moffitt Cancer Center as direct beneficiary. The entire amount of your IRA, 401(k) or 403(b), profit-sharing or Keogh plan, or other retirement accounts will be taxed if you leave them to your heirs. Instead, consider giving your loved ones less-tax-burdened assets like real estate and stock, and use retirement assets to create your legacy gift for Moffitt.

Benefits to you:

  • Eliminate potential estate tax on retirement assets.
  • Eliminate income tax on retirement assets funded on a pre-tax basis.
  • Receive potential savings from a donation tax credit.

To name Moffitt Cancer Center as a future beneficiary of your retirement plan, contact your bank or insurance company to see whether a change of beneficiary form must be completed.

You can transfer funds from your IRA directly to Moffitt in a tax-free transfer. This is an effective way to help us pioneer life changing treatments that give hope to our patients and their families.

Here’s how it works:

  • You must be 70 ½ or older.
  • An individual may transfer up to a total of $100,000 per year and a married couple may give up to $200,000.
  • Your gift must be transferred directly from the IRA account to Moffitt.
  • Your gift is a tax-free transfer of funds from your IRA to Moffitt, so it does not create taxable income for you and is not considered a charitable tax deduction.*
  • If you are 72 or older, the transfer of funds counts towards your annual Required Minimum Distribution from your IRA.

If you’re interested in this popular way to support Moffitt, download your IRA distribution form here.

*Due to recent changes in the laws governing retirement plans, please seek advice from your financial advisor regarding the tax implications of your gift, particularly if you plan to continue to contribute to your IRA after age 70 ½. Your gift may not qualify for these tax benefits.

If you have a life insurance policy that has outlasted its original purpose, you can use it to reduce your taxes and create a legacy gift for Moffitt.

If the Moffitt Foundation retains the policy to maturity, or you name it as a beneficiary, once the policy matures, the proceeds of your policy will be paid to the Moffitt Foundation.

Benefits to you:

  • Reduce your income taxes.
  • Receive additional donation tax deductions by making annual gifts so that the Foundation can pay the premiums.
  • See firsthand the impact your gift makes if the Foundation cashes in the policy.
  • Advance Moffitt’s mission as a world-renowned cancer care provider by supporting its multispecialty team in furthering research and innovating treatment for more than 300,000 patients (and counting!).

This kind of gift is ideal for someone who intends to continue living in their home or property through their lifetime, but still wants to make a charitable gift.

Please contact us if you are interested in making a gift of real estate to learn more.

A gift of stocks, bonds, and mutual funds that have appreciated in value are among the best ways to help Moffitt realize its vision. You may receive a charitable income tax deduction for the full market value of the stock and avoid paying the capital gains tax on any increase in the value of the stock.

When you redeem savings bonds, you or the person to whom you leave your bonds will owe income tax on the appreciation. But you can eliminate the income tax on bonds you own that have stopped earning interest and that you plan to redeem. Because the Moffitt Foundation is tax exempt, 100 percent of your gift of savings bonds will go to helping prevent, treat, and cure cancer … turning the fight of a lifetime into a courageous journey of victory.

Benefits to you:

  • Reduce income tax for yourself.
  • Reduce income tax and estate taxes for your loved ones.
  • Create your lasting legacy by changing someone’s life forever.

A charitable lead trust, or CLT, is a way of making a gift to Moffitt Cancer Center that reduces your gift and estate taxes and also allows you to control the timing of when your loved ones receive your assets.

It works like this: you contribute securities or other appreciating assets to a CLT. The trust makes annual payments to Moffitt Cancer Center for a period of time. When the trust terminates, the remaining principal balance is paid out to your heirs.

By setting up a charitable lead trust, you can save on taxes, provide for your loved ones, and save lives at Moffitt Cancer Center! Contact us to learn more or to receive a customized illustration of your benefits.

 

Please contact Diana Lasswell, Director of Planned Giving, at PlannedGiving@Moffitt.org or 800-456-3434 ext. 1403 if you have any questions.