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Gifts of Retirement Plan Assets

Many people are unaware that they can use their retirement plans to make a gift to the Hospital, and that using these funds can often be a most effective estate planning strategy. Most people have no idea that their retirement plans, including IRAs, Keoghs, and 401(k)s, and nonqualified deferred compensation, may currently owe income, federal, and state estate taxes, and even excise taxes when they die. These taxes can currently consume up to 75 percent of the assets in those plans. This tax bite makes retirement plans one of the worst assets to leave children, but one of the best vehicles for giving to NewYork-Presbyterian.

In fact, even in light of the Tax Relief Act of 2001, most donors will still choose to make their bequests with funds from their IRA's and other retirement plans, for an important reason. Even with a reduced or eliminated estate tax, income taxes will still have to be paid on the retirement funds passed down to your children. By gifting these funds to the Hospital and directing other assets to your family, you may receive significant tax benefits while helping to ensure the future of the Hospital.

Recent tax law changes have effectively lowered the required distributions for many accounts, raising the possibility of larger plans to pass on. Congress has also made it easier to gift funds from your plans to charity both during lifetime and through bequests – further reasons to consider funding your lifetime or bequest gift with Retirement Plan assets.

Note: As you consider any Charitable Gift Plan please consult with your advisor to determine the tax/financial implications for you and your family.