Retirement Assets

Making gifts from your IRA, 401(k) plans, profit-sharing plans, and other retirement assets can maximize your philanthropic impact at Denison while minimizing the tax hit for you and your family.

When left to beneficiaries, your retirement plan benefits are subject to both income and estate taxes—totaling 75 percent or more of the benefits’ value. But when left to Denison, nearly 100 percent of your assets go where they were intended: to support our mission.

As an added bonus, you can use your retirement assets to fund a qualified charitable remainder trust for Denison that pays your surviving spouse without income tax.

Example: Jane Smith accumulates $1 million in retirement-plan assets. Upon her death at age 73, she leaves them to her two children. Because of the tax bite, however, the amount Jane’s children receive, after taxes, could be less than $250,000.

By contrast, Jane could have left the $1 million to Denison, and the entire amount would have been available to create a scholarship or fund another of her favorite programs.

Planning pointer:

Retirement-plan benefits can also be used to fund a qualified charitable remainder trust for the benefit of a spouse. If the surviving spouse is designated beneficiary of the trust payments for his or her life, then the entire value of the trust, regardless of its size, will be deductible for estate-tax purposes. Since a qualified charitable remainder trust is a tax-exempt entity, it does not have to pay any income tax on the receipt of the retirement-plan benefits. Thus, the full value of the retirement-plan benefits will be available to provide payments to the surviving spouse.