If you are reading this article, you are probably interested in supporting UUSC’s mission of advancing human rights and social justice in marginalized communities. But like most people, you also want to care for your family.
There are ways to provide for your family, make a gift to UUSC and save taxes at the same time! You’ve worked hard to be successful and save for yourself and your family. Nonetheless, retirement assets in workplace retirement plans such as 401(k)s and traditional IRAs carry a heavy tax burden when passing these valuable investments to family.
The tax advantages of making charitable gifts of retirement assets are significant. If left to your family, these assets are subject to income taxes, and federal and state estate taxes, if applicable. When given to a charity such as UUSC, there are no income or estate taxes and there is an unlimited estate tax charitable deduction.
Consider a Gift of Your Retirement Assets
You can make such a gift by designating UUSC as a beneficiary of your IRA, 401(k), SEP, 403(b), or other workplace retirement plans. This “beneficiary designation” is one of the most family friendly and simplest ways to make a gift to UUSC.
A gift to heirs of non-workplace retirement accounts such as brokerage accounts, real estate or business interests are not subject to the same tax burden applicable to workplace retirement accounts. These non-workplace retirement assets make great gifts to family and others that you care about. That means retirement assets are a tax-smart way to make a gift to UUSC.
Everyone Can Win
Keep in mind that you don’t need to make UUSC the sole beneficiary of these retirement accounts. For example, you could make your family a 75% beneficiary of your IRA and UUSC as a 25% beneficiary. The portion of your IRA to charity will still enjoy the important tax benefits described above. What’s more, you can make UUSC a contingent beneficiary. For example, you could specify your IRA would only go to UUSC if your husband (or children, or other heirs) predecease you.
How Do I Make Such a Gift?
The kinds of plans to consider for the types of gifts we are talking about include traditional IRAs and most qualified retirement plans, such as 401(k), 403(b), Simple IRAs, SEPs and Keogh plans. All you need to do is to request a beneficiary designation form from your plan administrator and designate UUSC as a beneficiary of the percentage of your plan you would like to give to UUSC.
If you would like more information on providing for your heirs and making a tax-advantaged gift, please contact Brendan Donnelly at 617-301-4349 or by email at bdonnelly@uusc.org.
