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370 Main Street
Suite 650
Worcester, MA 01608
(508) 755-0980

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Giving Later
Options

Individual Retirement Accounts (IRAs) and Tax-deferred Retirement Accounts as Gifts

Why should I gift an IRA or other tax-deferred retirement account?

IRAs and other tax-deferred retirement plans such as 401(k)s are subject to multiple taxes, including income, estate, inheritance, and generation-skipping transfer taxes. Because of this, IRAs and other tax-deferred retirement plans are an excellent asset to transfer to Greater Worcester Community Foundation upon one’s death. Many people do not realize that the combination of taxes on these assets can be as much 73% for transfers to children and increasing to 84% for transfers to grandchildren. Consequently, if possible, donors are advised to use other assets to provide for family members and loved ones, and to transfer IRAs and other tax-deferred retirement accounts to charities such as Greater Worcester Community Foundation.

 

How do I do this?

• It is very simple to name Greater Worcester Community Foundation, Inc., as the plan beneficiary. Contact the plan administrator of the IRA or tax-deferred retirement account and request a change of beneficiary form. Members of the Foundation staff are available to assist you with this process.

• Another option is to designate a charitable remainder trust as the plan beneficiary, providing life income to your children or grandchildren and Greater Worcester Community Foundation as the remainder beneficiary. For more information about whether this option would be suitable for your situation please consult your attorney or financial advisor.

For more information about using IRAs and other tax-deferred accounts to achieve your charitable goals, contact Ann T. Lisi, executive director at (508) 755-0980.