You can designate the Foundation as beneficiary of your retirement assets after your death. Assets could include the following: IRA, Tax sheltered annuity, 401(k) and 403(b) plans.
- Retirement assets are typically best given as beneficiary proceeds after death.
- You can also make direct gifts from your distributions. To do this, you first receive and recognize the distribution for income tax purposes, and then make the gift. Your charitable deduction may offset the income that you recognize.
- Under current law, to make a direct gift of your retirement assets during your lifetime you must first withdraw the assets and recognize the distribution for income tax purposes.
One Donor's Story
The Donors
A New York couple in their 60’s wanted to ensure that the numerous charities they support would continue to receive annual support upon their deaths.
Their Gift
- They wanted anonymity until death.
- They wished to avoid the tax consequences of leaving their IRAs to their family.
- The beneficiary interest in a $500,000 IRA was used to create a permanent fund.
