Giving From Your Retirement Plan: The Details
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 any other beneficiary, including your spouse.
In fact, the new SECURE Act will mandate most beneficiaries other than your spouse to withdraw and pay income tax on the entire account value within 10 years. The tax implications may greatly reduce the benefits for your heirs.
This tax 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 60 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 the AIChE as the beneficiary of your retirement plan, then use other assets not subject to income tax to make gifts to your heirs. The American Institute of Chemical Engineers, as a qualified non-profit, won't pay income tax on our distribution and your heirs will receive their share of your estate without the burden of extra taxes.
Read more about how to designate us as a beneficiary of a retirement plan.
Please contact us so that we can assist you through every step of the process.
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Explore More Gift Options
Will or Trust →
You can plan a gift that will not affect your cash flow.
Appreciated Securities →
Take advantage of appreciated securities, avoid tax.
Life Insurance →
Make a significant gift, no matter the size of your estate.
Retirement Plan →
Donate double-taxed assets and leave more to family.
Donor-Advised Fund →
Make a gift from your DAF, or name us a beneficiary.
Contact Us
Planning your estate and legacy for future generations, including your charitable interests, takes careful evaluation. Consulting with the appropriate professionals can assist you.