Gift of Retirement Plan Assets
Tax Relief For Loved Ones
Retirement plan assets are a great way to support the work of the non-profits you care about, like your favorite MultiCare program or foundation, because they not only help support better care in your community, but they also can provide tax relief for your loved ones.
Money in an employee retirement plan, IRA or tax-sheltered annuity has yet to be taxed. When a distribution is made from your retirement plan account to a beneficiary, that person will owe federal income tax.
Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to support the MultiCare program or foundation you care about. As a nonprofit organization, we are tax-exempt and will receive the full amount of what you designate. You can take advantage of this gift opportunity in the following ways:
Name us a beneficiary of your plan. This requires four easy steps to update your beneficiary designation form through your plan administrator. Here you can designate the MultiCare program or foundation you choose as the primary beneficiary for a percentage or specific amount. You can also make us the contingent beneficiary so that we will receive the balance of your plan only if your primary beneficiary doesn't survive you.
A qualified charitable distribution (QCD), allows individuals who are 70½ years old or older to take advantage of a simple way to support the programs you care about and receive tax benefits in return. You can give any amount $1 to $100,000 annually from your IRA directly to a qualified charity such as your favorite MultiCare program or foundation without having to pay income taxes on the distribution. This popular gift option is also commonly called the IRA charitable rollover.
Fund a testamentary charitable remainder trust. When you fund a charitable remainder trust with your heavily taxed retirement plan assets, the trust will receive the proceeds of your plan. The trust typically pays income to one or more named beneficiaries for life or for a set term of up to 20 years, after which the remaining assets in the trust would go to support your favorite non-profit organizations, like the MultiCare program or foundation you care about. This gift provides excellent tax and income benefits for you while supporting your family and better care in your community.
A donor advised fund. When retirement plan assets pass to your heirs, distributions are taxed as ordinary income. This income tax burden can be substantial, greatly reducing the value of the intended gift. Instead, you can designate your donor advised fund as the beneficiary of all or a portion of your retirement plan assets. Your fund receives the full amount of the gift and bypasses any federal taxes.
Get free planning help
The MultiCare Foundations is proud to provide free and confidential estate planning services through Thompson & Associates for friends like you.
Not sure how to begin planning?Download a free personal estate planning kit
Ready for next steps?
- Contact our gift planning team at 253-403-3093 or firstname.lastname@example.org for additional information on how to make a gift from your retirement plan to support the MultiCare program or foundation you care about.
- Seek the advice of your financial or legal advisor. (Need an advisor? Look here for advisors familiar with MultiCare foundations and services.)
- If you include a MultiCare program or foundation in your plans, please refer to our sample bequest language and use our legal name and federal tax ID number.
- If you have already named a MultiCare program or foundation in your plans, please let us know. Many plan administrators assume no obligation to notify non-profit organizations of your designation and won’t monitor whether your gift designations are followed. Informing us helps preserve your intentions and ensures that we are able to follow your wishes.