RETIREMENT PLANS

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Gifts from Retirement Plans

Your retirement plan benefits are very likely a significant portion of your net worth. And because of special tax considerations, they could make an excellent choice for funding a charitable gift. Your retirement plans can support the Foundation during your lifetime or after your death. Retirement-plan benefits include assets held in individual retirement accounts (IRAs), 401(k) plans, profit-sharing plans, 403(b) plans and more.

Gifts of outright cash and marketable securities are encouraged and are acceptable through donor retirement programs. Closely held stock and or personal property held in retirement accounts must adhere to the policies for those types of assets.

Learn More: Gifts from Retirement Plans during Life
Learn More: Gifts from Retirement Plans at Death

Gifts from Retirement Plans during Life

Income taxes on assets in a retirement plan are deferred but not avoided. That means as these assets are withdrawn during retirement, they are subject to federal income taxes.

Withdrawing funds from your retirement plan and making a gift of some or all of those funds to support the Northshore Schools Foundation will create two tax events:
The withdrawn funds would be subject to federal income tax, but the amount contributed to the Northshore Schools Foundation would also generate a charitable deduction that will offset some or all of the tax. The end result, if the entire amount is contributed, would be a wash for federal income-tax purposes.

However, for some individuals the deductible amounts on federal and state tax returns might be less than the taxable distributions, in which case it would not be a wash.

Please note that withdrawals by those 59½ or younger will be subject to early-withdrawal penalty unless the donor falls within certain exceptions.

How It Works

1. You take a distribution from your qualified retirement plan or IRA that is includable in your gross income.

2. You make a gift of the distribution or of other assets equal in value to the distribution.

3. You receive an offsetting charitable deduction.

Benefits

• You may draw on perhaps your largest source of assets, with no adverse tax consequences, to support the programs that are important to you at the Northshore Schools Foundation.

• The distribution offsets your Required Minimum Distribution (RMD).

• If you use appreciated securities instead of cash from your distribution to make your gift, you’ll avoid the capital-gain tax on the appreciation.

Next Steps

Contact us to learn more about this gift plan or other options

Gifts from Retirement Plans at Death


Retirement-plan benefits often make an excellent choice for funding a testamentary charitable gift to the Northshore Schools Foundation. Not only will such a gift escape federal income tax, it may also avoid any potential federal estate tax.

How It Works

1. You name the Northshore Schools Foundation as beneficiary for part or all of your retirement plan benefits.
2. Funds are transferred by plan administrator at your death.

Benefits

• No federal income tax is due on the funds that pass to the Northshore Schools Foundation.
• No federal estate tax on the funds.
• You make a significant gift for the programs you support at the Northshore Schools Foundation.

Next Steps

Special note:
Call or e-mail us to notify us of your intent, and we will assist you with the details of the transfer.
Contact us to learn more about this gift plan or other options.

Please note that no information on this website should be considered as the rendering of legal, accounting or other professional advice. Please consult your personal tax and financial advisors before implementing a planned gift to charity, including the Northshore Schools Foundation. These investment options may have specific consequences for your estate planning. As always, we would be pleased to discuss in confidence how your gift can impact Northshore students.