Major Gifts   >   Donate Your Retirement Assets

Donate Your Retirement Assets

Did you know that your retirement plan assets are facing double taxation?  If you leave the assets to your heirs, you’ll generate “income in respect of a decedent.” So, not only is this amount diminished by estate taxes, but the recipient must also pay taxes on it!

Your decision of who gets the remainder depends on your family members’ circumstances—their needs come first.  If you can make other provisions for them, there is a better option for your retirement plan assets—a charitable gift.

Your Retirement Plan May Offer Tax Advantages

Individual account plans—such as IRA, Keogh or 401(k) account—resemble tax sheltered savings accounts.  If a participant dies before the entire account has been distributed, the remaining balance can be transferred to an heir or charitable organization like Bogart Pediatric Cancer Research Program.

The principal advantage of donating retirement plan assets to the Bogart Pediatric Cancer Research Program is that you avoid all income and estate taxes, whereas giving the assets to individual heirs may trigger a total effective marginal tax rate that is incredibly steep—event exceeding 65% in some cases.

Many Ways to Give

If you’ve already provided for your relatives in your estate plan, simply name the Bogart Pediatric Cancer Research Program as the primary beneficiary of your retirement assets.  If you want to make sure you don’t shortchange your family, here are a couple of other possibilities.

To implement your wishes, advise the plan administrator of your decision and sign whatever form is required. For an IRA or Keogh plan you administer personally, notify the custodian in writing, and keep a copy with your valuable papers.