Make the Most of Your
Retirement Plan Assets
Avoid Taxation and Support Our Work
Did you know that retirement accounts are exposed to federal income taxes that could be as much as 37 percent upon your death? The good news is that these taxes can be eliminated or reduced through a carefully planned charitable gift.
Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to Make-A-Wish to support our work. As a nonprofit organization, we are tax-exempt and will receive the full amount of what you designate to us from your plan. You can take advantage of this gift opportunity in several ways, illustrated on the following pages.
3 Ways to Donate Your Retirement Account
List Make-A-Wish as a beneficiary of your account.
The simplest way to leave the balance of a retirement account to Make-A-Wish after your lifetime is to list Make-A-Wish as the beneficiary on the form provided by your plan administrator. If you are married, your spouse must sign a written waiver.
Make Make-A-Wish a contingent beneficiary.
If you prefer to make your spouse the primary beneficiary of your retirement account, you can name Make-A-Wish as the contingent beneficiary. Want your children to benefit, too? Designate a specific amount for Make-A-Wish with the remainder for your children.
Give from your IRA.
Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution. You can give any amount up to $100,000 from your IRA directly to a qualified charity such as Make-A-Wish without having to pay income taxes on the money.
Example: Tax-Smart Planning
A longtime donor with a $1.5 million estate wants to leave Make-A-Wish a gift valued at $750,000. They also want to leave something to their only daughter who is in the 32 percent federal income tax bracket. Take a look at the options.
Option 1: Our donor divides assets equally between the daughter and Make-A-Wish.
| Daughter | Us | |
|---|---|---|
| IRA | $375,000 | $375,000 |
| Other assets (house, securities, cash) | $375,000 | $375,000 |
| Federal income tax owed | ($120,000) | ($0) |
| Net amount to beneficiary after taxes | $630,000 | $750,000 |
Option 2: Our donor names Make-A-Wish the beneficiary of retirement plan assets and leaves the daughter all other assets.
| Daughter | Us | |
|---|---|---|
| IRA | $0 | $750,000 |
| Other assets (house, securities, cash) | $750,000 | $0 |
| Federal income tax owed | ($0) | ($0) |
| Net amount to beneficiary after taxes | $750,000 | $750,000 |
Next Steps
For more information, please seek guidance from an estate planning attorney, a CPA or other tax professional. We would be happy to answer any questions regarding charitable giving that you or your advisors may have. Feel free to contact us at no obligation.
Nicole Powers
Director of Planned Giving
Phone: 800-722-9474, Ext. 3249 or 602-792-3249 (direct)
Fax: 602-792-3250
Email: npowers@wish.org
1702 E. Highland Ave #400
Phoenix, AZ 85016
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
Let's Talk
Nicole Powers
Director of Planned Giving
Phone: 800-722-9474, Ext. 3249 or 602-792-3249 (direct)
Fax: 602-792-3250
Email: npowers@wish.org
1702 E. Highland Ave #400
Phoenix, AZ 85016