Your Will or Trust Retirement Plan or Insurance Policy Charitable Gift Annuity
Gifts Anyone Can Make Gifts that Pay You Back Gifts that Protect Your Assets Goals FAQ
Sample Bequest Language Will Planning Wizard Legacy Planner ™ Compare Gifts Glossary
Annuity Payments Personal Finance

Giving From Your Retirement Plan: The Details

Your retirement fund can be taxed up to 70% if passed on to heirs, yet its tax-free to charity. Often, between paying taxes and receiving a deduction, using a lifetime withdrawal to make a gift to charity is a wash for tax purposes.

Is this gift right for you?

A gift from your retirement account is for you if…

  • You hold a 401(k), IRA, or other retirement plan.
  • You prefer to make a gift to us through your estate plan.
  • You want to balance your giving between providing for your family and for us.
  • You want to ensure the most efficient distribution of the assets in your estate.

If the largest asset in your estate is your retirement plan, such as a 401(k), IRA, or Keogh, you may be surprised to learn that the IRS will impose income tax on the remaining balance in the account if you designate it to a beneficiary other than your spouse.

The income from the after-death distribution of a tax-deferred retirement plan to an heir is taxable as income and is in addition to the estate tax that may be imposed on the account. For estates fully subject to the estate tax, the result can be that up to 75 percent of the value of your retirement plan will be consumed in taxes before your child, relative or friend receives it.

There is a sensible charitable alternative:

Name Audubon as the beneficiary of your retirement plan, then use other assets not subject to income tax to make gifts to your heirs. The National Audubon Society, Inc., as a qualified 501 (c)(3), won't pay income tax on our distribution and your heirs will receive their share of your estate without the burden of extra taxes.

Please contact us so that we can assist you through every step of the process.

Back




Office of Gift Planning
National Audubon Society
225 Varick Street, 7th Floor
New York, NY 10014
212-979-3033
plannedgifts@audubon.org