Two Tax-Saving Strategies

Part 1 – IRA’s and 401k’s

For those of us who are 70-1/2 or nearing it, we are now required to take minimum distributions for our IRA’s or 401k’s, and pay taxes on them at our current rates. Taking them monthly or in one annual lump are options.

If we also have pensions and social security payments, this money might not be needed for the month ly budget. It could be a very tidy way to make a contribution to the San Juan Alumni Association. And guess what, no taxes are due! 

Speak to the administrator of your IRA’s or 401k’s about this tax-saving idea. 

Part 2 – Life Insurance 

Life Insurance was a must for most of us during our wage-earning years, while our families were young and had childhood and college ahead of them. Or maybe the policy protected a business you were operating. But it’s quite common to find that the original purpose to have life insurance no longer exists.

You may be considering stopping monthly or annual premium payments. Or you may have fully paid up polices. Donating these policies to the San Juan Alumni Association will make a real impact for San Juan kids who need some help and protection.

You can name the SJAA as the beneficiary of the policy, if it is paid up, or you intend to keep making premium payments. Or you can transfer the ownership of the policy to SJAA. If it is paid up, it provides a benefit upon your passing. If it is not yet paid up, the Association can cash in the policy or adjust the death benefit to match the premiums paid so far.

There may be tax benefits to you for these donations. Talk to your financial adviser.