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Make the Most of Your
Retirement Plan Assets

Avoid Taxation and Support Our Work

Did you know that retirement accounts are exposed to federal income taxes that could be as much as 37 percent upon your death? The good news is that these taxes can be eliminated or reduced through a carefully planned charitable gift.

Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to Truman State University 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, illustrated on the following pages.

Retirement Plan Assets

3 Ways to Donate Your Retirement Account

1

List Truman as a beneficiary of your account.
The simplest way to leave the balance of a retirement account to Truman State University after your lifetime is to list Truman as the beneficiary on the form provided by your plan administrator. If you are married, your spouse must sign a written waiver.

2

Make Truman a contingent beneficiary.
If you prefer to make your spouse the primary beneficiary of your retirement account, you can name Truman State University as the contingent beneficiary. Want your children to benefit, too? Designate a specific amount for Truman with the remainder for your children.

3

Give from your IRA.
If you are 70½ years or older, you can give any amount up to $100,000 from your IRA directly to a qualified charity such as Truman State University without having to pay income taxes on the money. Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution.

Retirement Plan Assets

Example: Tax-Smart Planning

A longtime donor with a $1.5 million estate wants to leave Truman State University a gift valued at $750,000. They also want to leave something to their only daughter who is in the 32 percent federal income tax bracket. Take a look at the options.

Option 1: Our donor divides assets equally between the daughter and Truman.

Daughter Us
IRA $375,000 $375,000
Other assets (house, securities, cash) $375,000 $375,000
Federal income tax owed ($120,000) ($0)
Net amount to beneficiary after taxes $630,000 $750,000

Option 2: Our donor names Truman the beneficiary of retirement plan assets and leaves the daughter all other assets.

Daughter Us
IRA $0 $750,000
Other assets (house, securities, cash) $750,000 $0
Federal income tax owed ($0) ($0)
Net amount to beneficiary after taxes $750,000 $750,000
Retirement Plan Assets

Next Steps

For more information, please seek guidance from an estate planning attorney, a CPA or other tax professional. We would be happy to answer any questions regarding charitable giving that you or your advisors may have. Feel free to contact us at no obligation.

Marie Murphree Marie Murphree, CFRE
Director of Development, Planned Giving
Phone: 660-785-4124
Fax: 660-785-7519
Email: mmurphree@truman.edu
100 East Normal Avenue
Kirksville, MO 63501-4221

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Retirement Plan Assets

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