Retirement Plan

Individuals who have planned carefully for retirement may find that the assets in their IRAs and other qualified plans exceed their needs.  Several options exist for donors wishing to use IRA assets for charitable good. 

BENEFICIARY DESIGNATION:

By designating the Foundation as sole or partial beneficiary of assets remaining in a retirement plan, after death, your client's proceeds would be directed to a Foundation endowment with charitable purposes.  This strategy can be far more advantageous than having those assets included in a taxable estate or leaving them to heirs, in which case they may be taxed at a cumulative rate of over 65%.

HIGHLIGHTS:

  • No estate tax is due on the retirement plan assets that pass to the Foundation.
  • The gift will qualify client's estate for a charitable deduction.
  • The funds may be used to establish a life income trust for a person of donor's choice.
  • The only document required is a change of beneficiary form, which is available from the plan administrator.
  • Donor retains access to all retirement plan assets during client's lifetime.
  • A fund at the Foundation will reflect client's charitable interests.
  • Fund minimums apply, but there is no fee to establish a fund.

REQUIRED MINIMUM DISTRIBUTION:

In years when the Required Minimum Distribution is suspended, donors may still elect to take a taxable distribution and then contribute cash to charity for an offsetting deduction.

 
 


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