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:
- Contact the administrator of your retirement plan(s)* and request a change-of-beneficiary form.
- 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.
- Include our Tax ID Number: 94-2686530.
- Return the signed form to your plan administrator. Your spouse may need to sign a spousal waiver.
- 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.
Legacy 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
- Contact Deb Stallings at 415.398.2333 x103 or firstname.lastname@example.org for additional information.
- Seek the advice of your financial or legal advisor.
- 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