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Legacy Planning

A Gift of Retirement Plan Assets

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A Tax-Wise Strategy

While 401(k)s, IRAs and other retirement plans are excellent vehicles for accumulating assets for your use during retirement, much to many people’s surprise, they are a far less attractive way to pass an inheritance to loved ones. Here’s why.

The Tax Burden

Retirement plan assets are subject to income taxes when you name anyone other than your spouse as a beneficiary. These taxes can deplete a portion (up to 37% depending on your beneficiary’s income tax bracket) of your hard-earned savings–leaving less for heirs than you had hoped.

A Charitable Solution

If you would like to include a gift to help children and families through your estate, consider the tax-smart strategy of naming {{ChapterLong}} the beneficiary of all or a portion of your retirement plan assets and leaving other less-taxed assets to your heirs. Because of our tax-exempt status, the full value of your retirement plan assets make a difference in the lives of children who are sick.

How It Works

Name RMHC as a beneficiary of all or part of your retirement plan and RMHC receives the balance of your plan at death.

Steps to Take to Make Your Gift

Donating retirement plan assets is easy. And if you need to change or revoke your gift at any point during your lifetime, you can. Simply take these steps:

  1. Contact your retirement plan administrator for a simple change-of-beneficiary form or simply download the form from your provider’s website.
  2. Decide what percentage (1–100) you would like us to receive.
  3. Name {{ChapterLong}} and the gift percentage on the form.
  4. Return the form to your plan administrator.
  5. Contact {{Contact}} at {{ChapterLong}} to let us know of your plans.

©Ronald McDonald House Charities
The following trademarks used herein are owned by McDonald’s Corporation and its affiliates; McDonald’s, Ronald McDonald House Charities, Ronald McDonald House Charities Logo, RMHC, Ronald McDonald House, Ronald McDonald Family Room, and Ronald McDonald Care Mobile.

The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult with an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your 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.