Gifts of Retirement Assets

Retirement plans such as IRAs, 401(k)s, Keogh plans and 403(b) plans provide a simple way to make a charitable gift that can have a significant impact on  Susan G. Komen Northwest NC.  Current law imposes heavy taxes and penalties for withdrawing assets from your retirement plans, and estate and income taxes can consume a substantial portion of your retirement assets after your death.  Donating a retirement plan either during your life or after your death might allow you to accomplish multiple goals.

Lifetime Gifts

If you have ample income from other sources, you can use the distributions from your plan and make a gift to Susan G. Komen Northwest NC.  Although you will have to pay income tax on the distributions, you can deduct the gifts on your income tax returns, and offset some, if not all of the income tax due.  You will also have removed the withdrawn portion from your estate, which is a great benefit if your family will have to someday pay estate taxes.  You will find great satisfaction in watching your gifts at work.

Gifts at Death

If you need your income during your life, which most of us do, you can name Susan G. Komen Northwest NC as a partial or sole beneficiary of your retirement plan.  This type of gift has many benefits to your estate, including:

  • Estate Tax Savings: You will remove the value of your retirement plan from your taxable estate because the value will be offset by the charitable deduction, thus reducing or eliminating any estate tax burden on your heirs.
  • Income Tax Savings: If you name your heirs as the beneficiary of your IRA, they will owe substantial income taxes on distributions from your plan.  A large portion of the plan will be paid to the IRS rather than to your loved ones.   A charity is not subject to income taxes, so more of the gift would be available to Susan G. Komen Northwest NC than would be available to your heirs.   If you have both retirement plans and other assets such as stock, real estate or cash, you should consider making your charitable bequests from the retirement plan, leaving other assets (not subject to income tax) to your heirs.
  • The gift is easy:  All you have to do is fill out a form naming Susan G. Komen Northwest NC as a beneficiary.  Please make sure you check with your plan administrator to ensure that the retirement plan allows you to name charitable beneficiaries.