Retirement Plan Assets

Retirement plan assets can make an excellent charitable gift. Qualified retirement plans enjoy favorable tax treatment prior to retirement but are severely taxed at the death of the plan participant.

Primary among the incentives in the CARE Act passed by Congress is the IRA Rollover, which would allow individuals to transfer funds tax-free from an Individual Retirement Account or other qualified retirement vehicle to a charitable organization. Under the provision, funds folded into a planned gift could be transferred when the donor reaches age 59½ years. A direct contribution to a charity could be transferred when the donor reaches age 70½ years.