Retirement Plan Assets

A retirement savings plan is often one of the most valuable assets that people can own. All retirement savings plans require you to name one or more beneficiary in case you pass away before your savings have been fully distributed. Who you name as beneficiaries can have major income and sometimes estate tax consequences for the people you name as beneficiaries.

Retirement accounts are voluntary tax deferred salary savings plans (Qualifying plans are listed below) set up by individuals or by employers for their employees. Each of these plans contains income that has yet to be taxed. After your death, distributions made from your retirement plan account to your beneficiaries will be treated as taxable income by the IRS and by some states.

Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to Horizons Foundation in support of the LGBTQ community. 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.

Name us a beneficiary of your plan. All this requires is updating your beneficiary designation form through your plan administrator. You can designate us as the primary beneficiary for a percentage or specific amount. You can also make us the contingent beneficiary so that we will receive the balance of your plan only if your primary beneficiary doesn't survive you. (The steps are listed below.)

With the IRA Charitable Rollover, if you are 70½ years old or older, you can take advantage of a simple way to help those we serve and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as Horizons Foundation without having to pay income taxes on the money.

Fund a testamentary donor advised fund. You can designate your existing donor advised fund, or establish one upon your death, as the beneficiary of all or a portion of your retirement plan assets. Your fund receives the full amount of the gift.

Fund a testamentary charitable remainder trust. When you fund a charitable remainder trust with your heavily taxed retirement plan assets, the trust will receive the proceeds of your plan upon your death. The trust typically pays income to one or more named beneficiaries for life or for a set term of up to 20 years, after which the remaining assets in the trust would go to support Horizons. This gift provides income for your loved ones, while supporting Horizons.

Simple Steps to Limit Taxes and Help Horizons

To name Horizons a beneficiary of your Retirement Savings Assets:

  1. Contact the administrator of your retirement plan(s)* and request a change-of-beneficiary form.
  2. Decide what percentage of the account you wish to give to Horizons Foundation and name us, along with the stated percentage, on the beneficiary form.
  3. Include our Tax ID Number: 94-2686530.
  4. Return the signed form to your plan administrator. Your spouse may need to sign a spousal waiver.
  5. Tell us about your gift! We want to thank you, every year, with invitations to special events and membership in our Legacy Circle. Plus, your thoughtful gift plan can inspire others to consider Horizons in their own plan.

Qualifying retirement savings assets:

  • Individual Retirement Account (IRA)
  • Simplified Employee Pension (SEP) IRA
  • 401(k), 403(b), 457(b)

Contact us for more information about this simple process. We’re here to help! Simply call Deb Stallings at 415.398.2333 x103.

BettyLegacy Giving in Action

Betty plans to leave a bequest from her estate to her niece, Karen, and a bequest to Horizons Foundation. Among her assets, Betty owns her house outright, a securities portfolio she inherited from her mother, and an IRA. If she were to leave the IRA to Karen, the distributions to Karen will be subject to income taxes. Instead, Betty names us the beneficiary of her IRA and leaves less tax-burdened assets—her house and portfolio—to Karen, who enjoys lower income tax liability on her inheritance. Thanks to the unlimited estate tax charitable deduction, no estate tax will be levied on the IRA. And because Horizons Foundation is tax-exempt, income taxes are eliminated, too. Horizons will be able to use 100 percent of Betty’s IRA for the work we do in the LGBTQ community. THANK YOU BETTY!

See How It Works

Next Steps

  1. Contact Deb Stallings at 415.398.2333 x103 or for additional information.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Horizons in your plans, please use our legal name and Federal Tax ID.

Legal Name: Horizons Foundation
Address: 550 Montgomery Street, Suite 700 San Francisco, CA 94111
Federal Tax ID Number: 94-2686530

Not Sure How to Begin Planning?Download our FREE Personal Estate Planning Kit

A charitable bequest is one or two sentences in your will or living trust that leave to Horizons Foundation a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to Horizons Foundation, a nonprofit corporation currently located at 550 Montgomery Street, Suite 700 San Francisco, CA 94111 , or its successor thereto, ______________* [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Horizons or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Horizons as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Horizons as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Horizons where you agree to make a gift to Horizons and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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