Gifts of Retirement Plan Assets

Giving the Bad Assets Away

For many of us, the accumulation of retirement assets in 401k plans and IRAs has made it possible to retire. 

But there is a problem. 

Because the money you put into the plan was tax-deductible, your estate will have to pay income tax on the balance when you pass away.  In addition, if your estate is over $2,000,000 (for 2006), it will incur estate tax as well.  This could mean double taxation of retirement plan assets.  Not a good thing.

For many people, the idea of paying more in taxes than is necessary is not right.  You worked hard to earn and invest that money, only to have it taxed after you aren't here to protect it any longer.

The Solution:   Give away the bad assets.

By bad assets we mean those assets that would cost your estate the most to keep. By leaving qualified retirement plan funds to your favorite charitable organizations, you eliminate the income tax by creating a tax deduction. 

By designating the Long Beach Rescue Mission Foundation as a beneficiary (it can be a contingent beneficiary after the death of a spouse) funds pass to LBRM-Fdn free of taxes. It is possible to set up the beneficiary as the recipient of the entire remaining funds in the account or establish a percentage to fund the bequest.

Please note - the designation of any charity as a beneficiary of retirement fund assets cannot be simply written in your will or trust. The charity must be designated as a beneficiary of the retirement plan.

Everyone's personal circumstances are different, so please consult your tax advisor concerning the use of qualified retirement funds. We would be glad to make suggestions that could be effective in accomplishing you and your family's needs and benefit Long Beach Rescue Mission Foundation as well.

For further information or assistance, please contact us by calling 562-591-1292 or Contact The Ministry Support Office.  Your inquiry places you under no obligation.

If you choose to include the Long Beach Rescue Mission Foundation in your will, would you please notify us by completing the estate intention form?  We would like to express our sincere appreciation for your support.

Return to the contact page or to the Ministry Support home page.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Ministry Support  section has been developed for Long Beach Rescue Mission Foundation by Dan Mirgon & Associates, Inc. Please report any problems to webmaster.

Revised: June 24, 2008