Assets from your individual retirement account, pension plan, profit sharing plan, stock bonus plan, 401(k) or 403(b) can constitute a large portion of your retirement portfolio.
However, any retirement plan assets you don't use during your lifetime will be subject to income tax in the hands of your beneficiary, regardless of who that person is. If that person is not your spouse, your estate may also have to pay estate tax on those assets. In some cases, the combination of the two can mean that your heirs could receive as little as 30% of the entire value of your account.
Retirement Plan Asset Basics
Designating the Miller Center Foundation as a Beneficiary of Your Retirement Plan . . .
- Ensures that the University school, program or related foundation (all tax exempt entities) receives the full value of your gift.
- May be easily changed as your plans change.
- Removes assets from your estate, reducing estate tax.
- May allow you to distribute a greater portion of your estate to your heirs.
How to Include the Miller Center in Your Retirement Plan:
- Contact us to discuss your plans and obtain the proper designate language.
- Request a beneficiary form from your retirement plan administrator.
- Identify the Miller Center Foundation as a beneficiary of your plan.
- Include the Miller Center Foundation's Federal tax ID number (54-1420895) on your beneficiary form.
- Return the completed form to your retirement plan administrator.
- Provide a copy of your completed beneficiary form to the Miller Center Foundation.
Charitable IRA Rollover Extended Through 2011
With the enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853) on December 17, the Charitable IRA Rollover component of the Pension Protection Act (“PPA”) was extended. Potential donors may once again continue to support qualified public charities from both their Traditional and Roth IRAs.
More in-depth information on the Charitable IRA Rollover is available through the Partnership for Philanthropic Planning.
To contribute through the “Charitable IRA Rollover”:
- You must be at least 70 1/2 years old.
- The maximum amount transferable per individual in a calendar year is $100,000.
- The gift must be an outright gift that would normally be considered fully deductible.
- The funds must be distributed directly from your plan administrator to the qualified charity (supporting organizations and family foundations do not qualify).
- The funds must be from a Traditional or Roth IRA.
- This opportunity is available until December 31, 2011.
- Download a sample letter from a donor to an IRA manager here [DOC] [PDF].
Notify the Miller Center of your bequest and join the Burkett Miller Society.
For more information on making a planned gift, please contact us.
- Bequests (Wills or Living Trusts)
- Retirement Plan Assets
- Charitable Gift Annuities
- Charitable Remainder Trusts
- Charitable Lead Trusts
- Donating Real Estate
- Life Insurance
- Planned Giving Brochure (PDF)
- UVA Planned Gift Calculator
- The Burkett Miller Society
The Miller Center Foundation does not provide legal, tax or financial advice. We strongly recommend that you consult professional advisors on all legal, tax or financial matters, including gift planning considerations.