A Gift of Retirement Plan Assets


A Gift of Retirement Plan Assets

A tax-wise strategy

While 401 (k)s, IRAs, and other retirement plans are excellent vehicles for accumulating assets for your use during retirement, much to many people’s surprise, they are sometimes a far less attractive way to pass an inheritance to loved ones.

The tax burden

Retirement plan assets may be subject to heavy income tax and possible estate taxes when you name anyone other than your spouse as a beneficiary. These taxes can deplete a significant percentage of your hard-earned savings – leaving less for heirs than you had hoped.

A charitable solution

If you would like to include a gift to help children and families through your estate, consider the tax-smart strategy of naming the Ronald McDonald House Charities of Greater Las Vegas the beneficiary f all or a portion of your retirement plan assets and leaving other less-taxes assets to your heirs. Because of our tax-exempt status, as a charitable organization, income and estate taxes are eliminated, allowing the full value of your retirement plan assets to make a difference in the lives of children who are sick.

How it works

You name RMHLV as a beneficiary of all or part of your retirement plan assets, and then RMLV receives a balance of plan at your death.

Your benefits

When making a gift of appreciated securities owned for more than one year, you may receive a double tax benefit:

Steps to take to make your gift

Donating retirement plan assets is easy. Additionally, if you need to change or revoke your gift at any point during your lifetime, you can. Simply take these steps:

1. Contact your retirement plan administrator for a change-of-beneficiary form.

2. Decide what percentage (1-100) you would like RMHLV to receive. Please keep in mind that you can split your retirement for the benefit of multiple beneficiaries (50% to RMHLV and 50% to your family members, for example).

You can also name RMHLV as a contingent beneficiary, meaning that RMHLV will receive the gift only if your primary beneficiary is deceased.

3. Name Ronald McDonald House Charities of Greater Las Vegas and the gift percentage on the form.

4. Return the form to your plan administrator. It is important to then confirm the change is accepted by your administrator.

5. Contact us to let us know of your plans.

2. If you don’t have possession of the physical securities, instruct your broker to electronically transfer your intended shares and notify us once the transfer is complete.

For additional legacy planning options, click here

For more information about RMHC’s Planned Giving Program call Alyson McCarthy, Executive Director, 702-252-4663 x 8.