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Retirement plan beneficiary

Name a charitable beneficiary for retirement assets

Naming Fresno Regional Foundation as a beneficiary of your retirement plan is not only easy to do, it is also a way to make a significant and lasting gift to our community that may not be possible during your lifetime.

Why designate retirement assets for charity

If you are concerned with potentially high estate taxes, the charitable beneficiary designation is a good choice because the benefit payment is generally excluded from your estate for tax purposes. And, because you may change the beneficiary designation at any time, your decision is revocable.

How to designate a retirement plan beneficiary

You can designate the Foundation as a beneficiary of your retirement plan, whether it is a 401(k), 403(b), IRA (individual retirement account), or other qualified retirement program. These assets could be taxed at high rates upon your death. Estate taxes may be due in addition to the taxes your heirs may pay on the income in respect of the decedent (IRD). For these reasons, many advisors recommend retirement plan assets as the first to be designated for charitable purposes.

For a taxable estate over $3 million, the combination of estate and income taxes will frequently exceed 75 percent of the total amount—even more if the generation skipping transfer taxes are triggered. At a cost to your heirs of only 25 percent of the fair market value of these type of assets, you could apply 100 percent of the assets to a named charitable fund to accomplish your specific charitable objectives.

Although your retirement plan beneficiary form overrides your will, it is important that both documents are up-to-date and consistent.

Do you want to make a lasting investment in our community? Learn how to put your retirement assets to work for the future of the Central San Joaquin Valley.

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