Gifts of Retirement Assets
Retirement assets, such as an IRA, 401(k), 401(b) or pension, can be heavily taxed when left to heirs. It may be more tax efficient to leave cash and appreciated assets to your loved ones, while naming Western Michigan University Foundation as the beneficiary of your retirement assets.
Benefits of gifts of retirement assets
- Avoid potential estate tax on retirement assets.
- Your heirs would avoid income tax on any retirement assets funded on a pre-tax basis.
- Receive potential estate tax savings from an estate tax deduction.
How to make a gift of retirement assets
To leave your retirement assets to Western Michigan University Foundation, you will need to complete a beneficiary designation form provided by your retirement plan custodian. If you designate Western Michigan University Foundation as beneficiary, we will benefit from the full value of your gift because your IRA assets will not be taxed when you pass away. Your estate will benefit from an estate tax charitable deduction for the gift.
More on gifts of retirement assets
Did you know that when you pass away, 40% to 60% of your retirement assets may be taxed if you leave them to your loved ones? A more tax-efficient option may be to leave your heirs assets that receive a step up in basis, such as real estate and stock, and give the retirement assets to Western Michigan University Foundation. As a qualified charity, we are not taxed upon receiving an IRA or other retirement plan assets.
Contact us
If you have any questions about gifts of retirement assets, please contact us . We'd be happy to answer your questions or provide further assistance.
Please let us know if you have already included Western Michigan University Foundation as a beneficiary of your retirement assets. We would like to thank you and welcome you as a member of our 1903 Society .
