Planned Giving

Giving From Your Retirement Plan: The Details

Is this gift right for you?

A gift from your retirement account is for you if…

  • You hold a 401(k), IRA, or other retirement plan.
  • You prefer to make a gift to us through your estate plan.
  • You want to balance your giving between providing for your family and for us.
  • You want to ensure the most efficient distribution of the assets in your estate.

If the largest asset in your estate is your retirement plan, such as a 401(k), IRA, or Keogh, you may be surprised to learn that the IRS will impose income tax on the remaining balance in the account if you designate it to any other beneficiary, including your spouse.

This tax is in addition to the estate tax that may be imposed on the account. For estates fully subject to the estate tax, the result can be that up to 60 percent of the value of your retirement plan will be consumed in taxes before your child, relative, or friend receives it.

There is a sensible charitable alternative

Name Wells College as the beneficiary of your retirement plan, then use other assets not subject to income tax to make gifts to your heirs. Wells College, as a qualified non-profit, won't pay income tax on our distribution and your heirs will receive their share of your estate without the burden of extra taxes.

Read more about how to designate us as a beneficiary of a retirement plan.

Please contact us so that we can assist you through every step of the process.

Back


The material presented on this Planned Giving website is not offered as legal or tax advice.
Read full disclaimer|Sitemap|Planned Giving Content © 2018 PlannedGiving.com

Wells College promises a relevant liberal arts and sciences education. Intellectually challenging. Reinterpreted for today. Classroom teaching combined with hands-on learning. Wells graduates enter the world prepared for successful futures.

170 Main Street, Aurora, NY 13026
Admissions: 800.952.9355
General Information: 315.364.3266
© 2018 Wells College
Connect With Us
The following email addresses are a honeypot intended to test automated bots' ability to parse encoded addresses. Please do not contact these addresses. sgamgee@wells.edu fbaggins@wells.edu