Retirement assets can continue to work as your legacy

Nikonie Brown Philanthropic Resources 0 Comments

Did you know that if you leave your retirement fund assets such as your IRA or 401(k) to loved ones, these assets may be reduced by half or more due to taxes? However, those assets can continue to work for the greater good if you make a gift to charity as part of your estate plan.

Retirement plans appropriate for charitable giving include:

  • Profit-sharing or other defined contribution plans
  • 401(k) plans
  • 403(b) plans for employees of nonprofit organizations
  • Individual Retirement Accounts (IRAs)

If you name the Community Foundation as the beneficiary of your retirement plan, your unused benefits will be distributed upon your death to the Foundation, free of both estate and income taxes. Your gift can create a permanent, named charitable fund that makes gifts according to your wishes. Depending on the type of fund you establish, your children may be advisors to the fund, allowing them to remain involved in grantmaking. You may also add to an existing donor-advised fund.

There are some special considerations for Roth IRAs or annuity plans; consult your financial advisor about any specific questions regarding these. To make a gift of your retirement plan assets or for questions about our planned giving services, please contact Christy Eckoff at 404.588.3183 or ceckoff@cfgreateratlanta.org.