Retirement Plan Assets

IRA accounts, Keogh accounts, Section 401(k) and Section 403(b) plans, and other qualified pension and profit-sharing plans—otherwise known as "qualified retirement assets"—are often ideal assets to gift to charitable institutions.  Gifting from these qualified retirment assets often has great advantages over gifting from other assets of the estate.

A charitable organization can be designated as the beneficiary of all or a portion of a retirement account at death. A gift of this type provides an estate tax charitable deduction for the value of the amount distributed to the charity.  It also provides important benefits by limiting the tax on income in respect of a decedent.  It is sometimes appropriate to use this asset to fund a Charitable Remainder Unitrust or a Charitable Remainder Annuity Trust created within your Revocable Living Trust upon your death.  Advanced Legal Planning, LLC would be happy to assist you in determing how best to deal with your qualified retirement assets.

How Do I Make a Gift of Retirement Plan Assets?
To complete a gift of retirement plan assets you should counsel with your charitable planning team to determine what the best way is to proceed.  There are several options open to you, but the most common is to call the plan administrator and change the beneficiary designation to the charity or charities you wish to benefit.

Other Facts You Should Know About Retirement Plan Assets
You may gift retirement plan assets during life, but it requires that you first withdraw them from the plan and gift them to the charity or charities you wish to benefit.  Normally the amount withdrawn is fully taxable to the owner of the plan.  Professional advice may be needed to properly consider the impact of any withdrawal, including the possibility of added tax penalties.

Tools Used With This Asset (Retirement Plan Assets)

• Charitable Lead Trust (CLT)
• Donor Advised Fund (DAF)
• Private Foundation
• Support Organization
• Testamentary Trust