Gifts of Retirement Assets

As with bequests, naming Whitworth University as the beneficiary of your retirement plans is a simple way to make a gift to the university. Giving retirement assets to Whitworth is also smart estate planning.

Under current tax law, recipients must report distributions from qualified retirement plans (IRAs, 401(k)s, Keoghs, etc.) as taxable income. Upon the plan-owner's death, retirement-plan assets left to family or friends are subject to income tax and possibly to estate taxes. The tax implication could be as high as 65 percent. This is why using retirement funds to make charitable gifts is smart estate planning. It allows you to leave other, less heavily taxed, assets to family and friends.

A gift to Whitworth through your retirement plan can usually be accomplished by completing a change-of-beneficiary form available from your plan administrator.