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Retirement Plan Assets

A future gift to Michigan Tech with two-fold tax savings

After providing for yourself and your family, a gift of retirement plan assets to the Michigan Tech Fund can be a very tax-effective way to support Michigan Tech. By designating the Michigan Tech Fund to receive any remaining assets of your traditional IRA, 401(k), qualified pension, or profit-sharing plans, you retain complete access to the assets during your lifetime. Any gifts that later come to Michigan Tech can be deducted from your taxable estate, possibly saving your heirs from significant estate and income taxes.

Your pension plan administrator or financial institution can provide you with the necessary form to designate the Michigan Tech Fund as a beneficiary.

If you are considering a gift of retirement assets, please contact us for more information. Our staff will describe the tax savings for you and your family; we also look forward to hearing what you wish to accomplish with your gift and helping you make it a reality.

Benefits of gifts of retirement plan assets

  • Gift made from most highly taxed assets, leaving more for your family
  • Potential reduction of estate and income taxes
  • No impact on the assets during your lifetime
  • Simple way to make a future gift to the Michigan Tech program of your choice

Contact us

If you have any questions about retirement plan assets, please contact us. We would be happy to assist you and answer any questions that you have.

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When you withdraw money from a qualified retirement plan, it is subject to income tax. This is also true for any beneficiaries or heirs who receive funds after you pass away. There is no way around the tax. You and your beneficiaries can count on it.
A retirement plan can be a tax-efficient and simple way to include the Michigan Tech Fund in your estate plan. A bequest of part or all of your IRA allows you to make full use of your funds during your lifetime, after which the charity of your choosing will benefit in the future tax-free from the full value of what remains.

As an alternative to leaving retirement assets to loved ones, consider leaving appreciated stock instead. Your heirs will receive the stock income tax-free and with a basis equal to its value when the stock is received. Income tax is due only when the stock is sold, and only the amount in excess of the stepped-up basis is subject to tax.

Estate Gift to Heirs
Amount Subject to Tax
$50,000 gift of retirement assets
Entire $50,000 is subject to tax when it is withdrawn
$50,000 gift of appreciated stock
Only the increase in value exceeding $50,000 is taxed when stock is sold (no tax due on initial $50,000 gift)