Retirement Plan Assets

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A gift of retirement plan assets can be a surprisingly easy way to reduce potentially very high taxes and provide support to Caltech.

A gift of retirement plan assets could be right for you if:

  • You have an IRA or qualified retirement plan, such as a 401(k) or 403(b).
  • You do not expect to use all of your retirement plan assets during your lifetime.
  • You have other assets, such as securities and real estate, that you want to pass to heirs.
  • You may want to provide payments to loved ones after you are gone.
  • You would like to make a bequest gift to Caltech.

Option 1: Make a tax-free gift with an IRA charitable rollover (New as of 12/18/15)

You can make a tax-free gift from your traditional IRA (other qualified retirement plans such as 401(k)s and 403(b)s are not eligible). You must be at least 70 ½ years old to take advantage of this opportunity. You must transfer your gift directly from your IRA administrator to Caltech. The total of all of your rollover gifts in any one year cannot exceed $100,000 per person. A spouse with a separate IRA could also make a rollover gift of up to $100,000 if they otherwise qualify.

The benefits of an IRA charitable rollover gift include:

  1. Satisfies the required minimum distribution but is not included in taxable income
  2. Avoids income tax on IRA withdrawals
  3. Supports the important work of Caltech with a tax-free gift

Option 2: Designate remaining retirement plan assets for Caltech

You designate on your IRA or qualified plan beneficiary designation form the beneficiary of all or a portion of what remains in your retirement plan when the plan ends.

In addition to having the satisfaction of making a significant gift to Caltech, your benefits include:

  1. Savings on federal and state taxes that can total 39.6% or more.
  2. Preservation pf non-retirement plan assets for family.

Option 3: Designate remaining retirement plan assets for a life income plan

You can designate on your IRA or qualified plan beneficiary designation form that the assets remaining when your plan ends be used to fund a gift arrangement that will make payments to family members or other loved ones for the rest of their lives. When the gift arrangement ends, what's left goes to Caltech.

In addition to having the satisfaction of making a significant gift to Caltech, your benefits include:

  1. Save federal and state taxes
  2. Preserve non-retirement plan assets for family
  3. Provide payments to family or other loved ones for life