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Gifts of Retirement Plan Assets

You can: 1) Make Wofford the beneficiary of your retirement plan, or you may be eligible to 2) rollover your required distribution to Wofford.

GiftsofRetirementAssetsataGlance

Option 1: Making Wofford the Beneficiary

How It Works:

    • Contact your plan administrator and ask for a “Change of Beneficiary Form”.
    • Name Wofford as the sole beneficiar.
    • Complete a Confidential Statement of a Deferred Gift form to document the designation of your gift.
    • Upon your death, any remaining assets in the retirement account are distributed to Wofford.
 

Assets Used:

    • Individual Retirement Account (IRA)
    • 401 (k) or 403(b)
    • Keogh Plan

Benefits:

    • Extremely simple, no need for an attorney or accountant
    • Reduced estate taxes
    • Help your heirs avoid income taxes (see below infographic for more information)
    • Wofford will receive the full value of the plan (with no taxation) to be used for the purpose you have designated

GiftofRA_BeneficiaryComparisonChart

 

Option 2: Charitable IRA Rollover

Since 2007, congress has allowed donors (who 70 and ½ or older) to gift their required distribution from an IRA to a charity in order to avoid additional income tax. Although it is not guaranteed every year, Congress has approved the Charitable IRA Rollover through 2016.

How It Works:

    • Contact your plan administrator and ask for your required distribution (up to $100,000) to be made directly to Wofford*
    • Notify Wofford as to how you would like the gift to be designated
         * Distribution cannot be sent directly to you, as it will then be considered income and will be taxable as such.        
 

Assets Used:

    • Annual minimum required distribution from a retirement plan

Benefits

    • You will enjoy reduced income and income tax liability
    • You will have the opportunity to see the impact of your gift during your lifetime

You might be interested if…

...You do not need the income or do not want to have an additional tax liability.

Example: