For many of Hillel's supporters, retirement plan assets (Individual Retirement Account (IRA), 401(k), KEOGH, or other qualified profit sharing or pension plans) have become an ever-increasing portion of their net worth. By using these assets to make a charitable gift to Hillel, you can take advantage of an incredibly powerful wealth management tool to benefit yourself, your family, and ensure a stronger Jewish future. As with other planned gifts, a transfer of retirement plan assets qualifies you for membership in Hillel's
Heritage Society.
In some instances, as much as 70 percent of retirement assets can be consumed by taxes after the plan owner's death. Through careful planning, you can preserve the value of your retirement assets by using them to make a charitable gift to Hillel. This allows you, not the government, to choose how a potentially substantial portion of your lifetime savings is used. You could then use other tax-advantaged assets (cash, securities or property) to make gifts to your heirs.
Some Planning Options
There are several ways you can avoid a potentially crippling tax burden on your retirement assets:
- Change your retirement plan beneficiary designation to name Hillel: The Foundation for Jewish Campus Life as the sole or partial beneficiary of your retirement plan(s). Because Hillel is a tax-exempt organization, the full value of these assets would support Jewish life on campus.
- Make a testamentary transfer of your retirement plan assets to a charitable remainder trust. Your estate gets a tax deduction for the remainder interest coming to Hillel, and your heirs would be taxed only on the annual income flowing through the trust.
Beneficiary DesignationsBecause distributions from retirement plans are not subject to beneficiary designations made in your will or revocable trust, it is very important that you carefully review the beneficiary designations you make under the retirement plan itself. You should contact your plan administrator directly to obtain the necessary beneficiary designation forms.
To designate Hillel as a beneficiary of your retirement plan, your plan administrator may need the following information:
Hillel: The Foundation for Jewish Campus Life is a "publicly supported organization," incorporated in the District of Columbia on September 29, 1993, and is classified as tax-exempt under Internal Revenue Code 501(c)(3). The federal tax ID number for Hillel: The Foundation for Jewish Campus Life is 52-1844823.
The information on this Web page is for illustration purposes only and should not be considered legal, accounting, or other professional advice. The actual benefits of your gift may vary depending on your individual circumstances. Hillel's development professionals would be happy to assist you and your advisors in determining the best gift plan for you.
If you have questions or would like to learn more about making a gift of retirement plan assets, you may contact Eran Gasko directly.