Gifts of Retirement Plan Assets: Getting Started
Want to get the most value from your nest egg, protect your heirs from heavy taxes and make your mark at our organization? Consider leaving a portion of your retirement plan assets to Wartburg College.
How It Works
If you die with retirement plan assets in your estate, those assets are subject to income taxes. This can reduce the amount that normally would be passed to heirs by up to 39.6 percent. In contrast, as a nonprofit organization, we are tax-exempt and eligible to receive the full amount and bypass any federal taxes. Income taxes can be eliminated or reduced through a carefully planned charitable gift. Consider these gift options:
Did you know?
If your children are the beneficiaries of your IRAs and other retirement plan assets, federal income taxes may erode up to 39.6 percent of the amount they receive.
To implement your wishes, simply advise your plan administrator of your decision and sign whatever forms are required.
Retirement Plan Assets
You name Wartburg College as beneficiary of all or part of your retirement plan assets.
Retirement Plan Assets
Wartburg College receives the balance of the plan at your death.
How You Benefit
Leaving retirement plan assets to Wartburg College shields your heirs from taxes on the retirement assets and frees you to give them other assets that are not as heavily taxed.
Betty plans to leave $250,000 to her niece, Lisa, and $250,000 to Wartburg College. Among her assets, Betty owns a $250,000 IRA. If she leaves the IRA to Lisa, it will be subject to income taxes at Lisa's marginal income tax rate (35 percent). To avoid her niece having to pay these taxes, Betty names us the beneficiary of her IRA and leaves less tax-burdened assets to Lisa. Because Wartburg College is tax-exempt, income taxes are eliminated.
A Second Gift OptionPlease contact Mark Piel at 866-219-9115 (toll free) or 319-352-8666 or email@example.com if we can answer any questions you have about this way to support our organization.
You can also consider creating a charitable remainder trust for heavily taxed retirement plan assets. Such a trust could be set up to receive the proceeds of your retirement plan at your death. The trust would pay income for life to a family member of your choosing, after which the remaining assets pass to Wartburg College.
Your Next Steps
Getting Started | Is This Gift Right for You? | Case Study | How to Complete Your Gift | Action Items
Copyright © The Stelter Company, All rights reserved.
The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.
Contact Us: 866-219-9115
Wartburg College is dedicated to challenging and nurturing students for lives of leadership and service as a spirited expression of their faith and learning.
Wartburg does not discriminate on the basis of race, color, national origin, sex, age, sexual orientation, or handicap in admission, employment, programs, or activities.