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Retirement Assets

Giving through your retirement plans.

Retirement accounts can be the most highly taxed assets many people hold, as they may be subject to both income tax when distributed as well as estate taxes. By naming 1,000 Dreams Fund as the beneficiary of your retirement plan, the full amount of your legacy gift is available for a designation that you specify such as scholarship support, program expansion, or unrestricted funds that provide the organization with flexible support.

How It Works

Request a beneficiary designation form from your plan’s administrator. Many plans permit you to make the change directly online.

Complete the (printed or online) form using the following suggested language: 1,000 Dreams Fund, for the benefit of 1,000 Dreams Fund.

Important Facts

Any individual who is 70½ or older can transfer tax-free gifts (maximum $100,000 each year) directly from their IRA to 1,000 Dreams Fund using the Qualified Charitable Distribution.

CARES Act tax incentives have been expanded since 2021, click here to find out more information.

A gift of retirement plan assets could be right for you if:

  • You have an IRA or qualified retirement plan, such as a 401(k) or 403(b).
  • You do not expect to use all of your retirement plan assets during your lifetime.
  • You have other assets, such as securities and real estate, that you want to pass to heirs.
  • You want to provide payments to loved ones after you are gone.
  • You would like to make a bequest gift to 1,000 Dreams Fund.

Ways You Can Donate Your Retirement Assets

You can make a tax-free gift from your traditional IRA. Such a gift is known as a Qualified Charitable Distribution or QCD. Other qualified retirement plans such as 401(k)s and 403(b)s are not eligible, but you can rollover funds from these plans to an IRA and then make a QCD gift. You must be at least 70 ½ years old to take advantage of this opportunity. Your QCD must go directly from your IRA administrator to 1,000 Dreams Fund. The total of all of your QCD gifts for 2024 cannot exceed $105,000 per person; however, your spouse with a separate IRA can also make a QCD of up to $105,000 in 2024 if they otherwise qualify. Each financial institution has their own process and you must consult with your IRA administrator for specifications and to complete giving through your retirement assets.

The benefits of a QCD gift include:

  1. If you don’t itemize and are not yet required to take your RMD, a QCD offers all of the benefits of an itemized income tax charitable deduction.
  2. If you are age 73 and must take your RMD, a QCD can satisfy your RMD without increasing your income taxes.
  3. You support the important work of 1,000 Dreams Fund with a tax-free gift.

Another attractive option is to designate 1,000 Dreams Fund as the recipient of some or all of what remains in your IRA, 401(k), 403(b), or other qualified plan when they end.
In addition to having the satisfaction of helping 1,000 Dreams Fund meet the needs of those young women most in need, your benefits include:

  1. The QCD is an income tax smart gift. The SECURE Act enacted in 2020 prohibits stretching out distributions from an inherited IRA over the life of heirs.
  2. Your estate is entitled to an unlimited estate tax charitable deduction for the funds from your IRA donated to 1,000 Dreams Fund if your estate exceeds the applicable exemption.
  3. Since 1,000 Dreams Fund is tax-exempt, a gift to 1,000 Dreams Fund from your IRA is not subject to income taxes.
  4. Preservation of tax favored non-retirement plan assets for family.

Alternatively, you can designate that a portion or all of the assets remaining when your IRA, 401(k), 403(b), or other qualified plan ends be used to fund a charitable remainder trust or gift annuity arrangement that will make payments to family members or other loved ones for the rest of your life. When the gift arrangement ends, remaining assets will go to 1,000 Dreams Fund.

In addition to having the satisfaction of making a significant gift to 1,000 Dreams Fund, your benefits include:

  1. A charitable trust or annuity can provide lifetime income for life since that is no longer possible after adoption of the SECURE Act. That law prohibits stretching out distributions from an inherited IRA over the life of heirs.
  2. The gift portion of your charitable trust or annuity provides an unlimited estate tax charitable deduction if your estate is subject to estate taxes.
  3. Such a plan preserves non-retirement plan assets for family.

PLEASE NOTE THIS IS NOT PROFESSIONAL LEGAL OR TAX ADVICE. YOU SHOULD CONSULT YOUR LEGAL AND TAX ADVISORS REGARDING YOUR SPECIFIC SITUATION.