Mike* makes annual contributions to a Roth IRA, but also has a traditional IRA as a result of a roll-over from a previous job. On top of that, several years ago he worked for an organization that was too small to offer traditional retirement accounts, so they allowed him to set up a Simple IRA.
When he retires in 20 years, the Roth offers the best tax benefits. And if he uses all of that account, the traditional IRA is also fairly substantial. However, if he uses the entire traditional IRA as well, the Simple IRA is still available. But since he doesn't expect to need it - or at least not all of it - Mike has made the decision to make MHA the beneficiary on the Simple IRA.
Because the gift won't come to MHA until after Mike's passing, it is a planned gift, and makes him a member of the Bell Society. And the funds remain available for his financial needs all throughout his life. Making MHA the beneficiary simply means that if there are any funds left, they will be used to support the mission of MHA at that time.
If you would like additional information about how to support MHA through gifts of retirement accounts, call 316.651.1241 for a free consultation.
* Names changed to protect anonymity.