Remember to include Retirement Benefits and your IRA in your philanthropycharitable distribution graphic

Many donors have some form of retirement plan, be it a 401(k,) 403(b), 457 plan or a traditional IRA. Because of compounding interest and tax deferrals, these plans can grow quickly. However, if you pass with retirement plan assets in your estate, those assets are subject to taxes as high as 35 percent upon distribution.

However, local nonprofits including the Yampa Valley Community Foundation may receive the full amount of your assets without being subject to taxes. To avoid putting the strain of taxes on your heirs, consider designating funds to a local nonprofit or any of the Funds at the Community Foundation as one of the beneficiaries on your Beneficiary Form. You can do this easily on your own and there is no need to change your Will, incur legal fees, etc.

There are several ways to use your retirement benefits to donate to, or start a Fund:

Four Ways to make your favorite local nonprofit or the Community Foundation a Retirement Asset Beneficiary

  1. Designate a local nonprofit or a fund at the Community Foundation as the primary beneficiary for your benefits.
  2. Designate a specific amount or percentage of your retirement assets to be paid to a local nonprofit or a fund at the Community Foundation. The remainder of the assets will be distributed among your loved ones.
  3. Make a local nonprofit or a fund at the Community Foundation the contingent beneficiary of these assets. In this instance, the local nonprofit or a fund at the Community Foundation will receive the balance only if your primary beneficiary does not survive you.
  4. Create a charitable remainder trust for your retirement plan. When you pass, your retirement assets will be transferred to the trust. The trust will pay income for life to a designated beneficiary, after whose death the assets will transfer to a designated local nonprofit or a fund at the Community Foundation.

For additional information on making a planned gift to the Yampa Valley Community Foundation, call 970-879-8632.