Retirement Plan Assets
Do you have money saved in an employee retirement plan, IRA or tax-sheltered annuity? Each of these plans contains income that has yet to be taxed. When a distribution is made from your retirement plan account, your beneficiaries will owe federal income tax. Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to the University of Denver to support our work.
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.
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 the University of Denver without having to pay income taxes on the money.
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 the University. This gift provides excellent tax and income benefits for you while supporting your family and our work.
A donor advised fund. When retirement plan assets pass to your heirs, distributions are taxed as ordinary income. This income tax burden can be substantial, greatly reducing the value of the intended gift. Instead, you can designate your donor advised fund as the beneficiary of all or a portion of your retirement plan assets. Your fund receives the full amount of the gift and bypasses any federal taxes.
An Example from DU
For Dan (BSBA ’63; JD ’72) and Beth Whittemore, exploring Native American culture is an important part of life.
The couple’s interest in the human rights of Indians began when they lived in Phoenix. Upon moving back to Denver in retirement, they began teaching a class on the Rights of Indians for DU’s Osher Lifelong Learning Institute.
In 2015, they established a scholarship to assist Native Americans studying at DU’s Sturm College of Law. The scholarship is intended, the Whittemores say, for Native Americans to learn the legal system and “utilize the law to address legal issues facing Indians and tribes.”
“Our satisfaction was finding an area where we could contribute to the indigenous people,” Dan says. “We’re very interested in human rights for Indians, so the endowed scholarship seemed like a perfect fit. It will continue in perpetuity.”
The gift takes advantage of the Momentum Scholarship match and the Sturm Family Foundation match, and is a five-year pledge from Dan’s IRA.
- Contact Jon Kraus at 303.871.4619 or firstname.lastname@example.org for additional information.
- Seek the advice of your financial or legal advisor.
- If you include the University in your plans, please use our legal name and federal tax ID.
Legal Name: University of Denver (Colorado Seminary)
Address: 2199 S. University Blvd., Denver, CO 80208
Federal Tax ID Number: 84-0404231
Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Deferred Gift Annuities: Plan Now, Benefit Later.
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Plan a Charitable Gift Today
Ready to take advantage of this tax-smart gift opportunity? Download our FREE guide Make the Most of Your Retirement Plan Assets.View My Free Brochure
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual 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.