IRAs and Qualified Retirement Plans
Retirement plan assets are some of the most tax efficient assets to transfer to charity in a last will and testament. Distributions from IRAs and other qualified retirement plans at the end of your life can be subject to multiple taxes, including income, estate, inheritance and generation-skipping transfer taxes. By transferring assets in your IRAs and certain qualified plans to Earth Economics at death, you can avoid these taxes. Distributions from Roth IRAs are not subject to income tax; You will have no tax advantage by contributing from a Roth IRA, however Earth Economics will still benefit.
Naming Earth Economics as your IRA plan beneficiary
You can designate Earth Economics as your IRA or qualified retirement plan beneficiary. If designating Earth Economics as a recipient of the assets along with a family member, it is preferable to designate the share to Earth Economics as a percentage rather than a fixed amount. These funds can be used to establish a charitable gift fund for a specific (restricted) Earth Economics project or program, or the funds can be used for general purposes (unrestricted). To name Earth Economics as beneficiary, contact your IRA or qualified retirement plan administrator and request a "change of beneficiary" form.
Transferring retirement plan assets to a charity during your lifetime creates little tax advantage due to the income tax and possible penalty payments associated with such lifetime transfers. However, legislation is pending in Congress that would allow donors to "rollover" assets from an IRA during their lifetime to a charity such as Earth Economics, without incurring any tax liabilities.
A donation is definitely a "win-win proposition" for you!
Contact Earth Economics about making a charitable contribution! |
