Gift of Retirement Plan
Assets
Working to
provide for the future
Naming the Community Foundation as a beneficiary of your
retirement plan is not only easy to do, it is also a way to make
a significant and lasting gift to our community that may not be
possible during your lifetime.
If you are concerned
with potentially high estate taxes, the charitable beneficiary
designation is a good choice because the benefit payment is
generally excluded from your estate for tax purposes. And,
because you may change the beneficiary designation at any time,
your decision is revocable.
One of the most
tax-efficient ways to give back to your community is by
designating the Community Foundation as a beneficiary of your
retirement plan, whether it is a 401(k), 403(b), IRA (individual
retirement account), or other qualified retirement program.
These assets could be taxed at rates as high as 70 percent upon
your death. Estate taxes may be due in addition to the taxes
your heirs may pay on the income in respect of the decedent (IRD).
For these reasons, many advisors recommend retirement plan
assets as the first to be designated for charitable purposes.
Although your
retirement plan beneficiary form overrides your will, it is
important that both documents are up-to-date and consistent.
How it works:
-
You designate
the Community Foundation as a full or partial beneficiary of
your qualified retirement plan using a form supplied by the
policy underwriter or plan administrator.
-
Upon your death, the benefit comes to the
Community
Foundation. We set up a special fund in your name, in the
name of your family, or in honor of any person or
organization you choose. Or, you may choose to have the
assets contributed to an existing fund.
-
We handle all
the administrative details.
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Your gift can be
placed into an endowment that is invested over time.
Earnings from your fund are used to make grants addressing
community needs. Your gift is a permanent source of
community capital, helping to do good work forever.
