Consider a Donation of Retirement Assets
Take advantage of this tax-smart gift opportunity.
Retirement plan assets are a great way to support your community because they not only help support critical needs or designated charities, but they also can provide tax relief for your loved ones.
Money in an employee retirement plan, IRA or tax-sheltered annuity has yet to be taxed. When a distribution is made from your retirement plan account to a beneficiary, that person will owe federal income tax.
Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to Innovia Foundation to support the charitable causes most important to you. 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 the following ways:
Name Innovia Foundation a beneficiary of your plan. This requires you to update your beneficiary designation form through your plan administrator. Here you can designate Inland Northwest Community Foundation as the primary beneficiary for a percentage or specific amount. You can also make us the contingent beneficiary so that we will receive the balance of your plan only if your primary beneficiary doesn’t survive you.
Fund a testamentary charitable remainder trust. When you fund a charitable remainder trust with your heavily taxed retirement plan assets, the trust will receive the proceeds of your plan. The trust typically pays income to one or more named beneficiaries for life or for a set term of up to 20 years, after which the remaining assets in the trust would go to support Inland Northwest Community Foundation for a specific fund you identify. This gift provides excellent tax and income benefits for you while supporting your family and your community.
Use your donor advised fund. When retirement plan assets pass to your heirs, distributions are taxed as ordinary income. This income tax burden can be substantial, greatly reducing the value of the intended gift. Instead, you can designate Innovia Foundation to receive all or a portion of your retirement plan assets for your donor advised fund at Innovia Foundation and name a successor advisor to use the funds for charitable grantmaking. Your fund receives the full amount of the gift and bypasses any federal taxes.
- Contact Innovia’s Gift Planning Team at 509-624-2606 or email@example.com for additional information.
- Seek the advice of your financial or legal advisor.
- If you include Innovia Foundation in your plans, please use our legal name and federal tax ID.
Legal Name: Innovia Foundation
Address: 818 West Riverside Avenue, Suite 650, Spokane, WA 99201-0909
Federal Tax ID Number: 91-0941053
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. If you do not currently have a professional advisor, please contact our office for a list of current professional advisors. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.