Retirement Account Assets
To make a current outright gift to charity today of Retirement Plan Assets an individual would first have to take a distribution or withdrawal from the IRA or Retirement Plan Account (must be over 591/2), current taxes would have to be paid, a gift made to charity, and a current charitable income tax deduction could be taken. This kind of a gift is usually considered to be a "wash" for tax purposes.
A Retirement Plan Account can make one of the simplest and possibly most tax efficient deferred gifts one can give to charity. Retirement assets are not "tax friendly" since most individuals have contributed to retirement plans on a tax deferred basis, meaning taxes have been postponed until retirement. At retirement when distributions are taken both federal and state income taxes are due. If an individual also finds themselves to be in a high estate and gift tax bracket, heirs could potentially receive pennies on the dollar when the retirement assets are inherited. By naming the charity as beneficiary no taxes would be due on this account.
To make a future gift of a retirement Plan Account simply call the plan administrator, bank or brokerage company to request a Change of Beneficiary Form. A Charity can be named as primary beneficiary, contingent beneficiary, partial beneficiary or residual beneficiary of the account balance. Please contact one of the staff members with questions surrounding gifts of Retirement Plan Assets.
