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Planned Giving - Gifts From Your Retirement Plan

Gifts From Your Retirement Plan

It is important to handle retirement plan assets (IRA, 401(k), 403(b), etc.) carefully in your estate plan. Without proper planning, these assets can be hit with a double tax burden—estate taxes and income taxes. The silver lining here is that making a charitable gift with your retirement plan assets is one of the simplest planned gifts that you can make, and can free up other assets for your heirs where taxes won’t be as onerous an issue.

Retirement Plan Beneficiary Langauge

You may name the Science Museum of Minnesota as a beneficiary of your IRA or other qualified retirement benefits. Donors should consult with their tax advisor regarding the tax benefits of such gifts.

Naming the Museum as the beneficiary of a qualified retirement plan asset such as a 401(k), 403(b), IRA, Keogh or profit-sharing pension plan will accomplish a charitable goal while realizing significant tax savings. It can be costly to pass such assets on to heirs because of heavy tax consequences. By naming the Museum as a beneficiary of a retirement plan, the donor maintains complete control over the asset while living, but at the donor's death the plan passes to support the Museum free of both estate and income taxes.

Making a gift from your retirement plan is easy and should not cost you any attorney fees. Simply request a change of beneficiary form from your plan administrator. When you have completed this (usually short) form, return it to your plan administrator and notify the Science Museum of Minnesota. We can also assist you with the proper language for your beneficiary designation to the Museum.