Gift of Retirement Plan Benefits

Bequests and Planned Giving

Making an Outright Gift from Your IRA

In December 2010 President Obama signed into law The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This bill retroactively extends the IRA charitable rollover from Jan. 1, 2010, through Dec. 31, 2011, so you can use a tax-free distribution from a traditional IRA to make a gift to Colby.

The original provision of the Pension Protection Act of 2006 was extended by Congress to allow donors aged 70 1/2 and older to direct gifts of up to $100,000 per year to charity from IRAs in both 2010 and 2011 and offers some excellent benefits to the donor.

Please contact your plan administrator to arrange for a direct charitable rollover gift if you wish to take advantage of this limited opportunity to make a gift to Earlham.  Please also take a moment to notify the Alumni and Development of your intentions, as these transfers often come to the college without identifying information. If you would like more information or assistance in arranging such a gift, please contact Kim Tanner.

Estate Gifts of IRA Assets

A gift of your IRA through your estate plan in the future is an extremely tax-efficient way of making a charitable gift.

Many individuals today have assets accumulating in qualified retirement plans such as IRA, 401(k), or Keogh plans. Often, these accounts have been growing tax-free for years. Once owners begin to receive payments from their retirement plans, the distributions are taxed. These plans are also included in the owner's taxable estate.

Because they are subject to income taxes to your beneficiaries, retirement assets make ideal gifts to tax-exempt charitable organizations such as Earlham. Otherwise, the income taxes on retirement assets you leave to your loved ones can be as high as 35 percent. This means that an IRA worth $100,000 will be worth only $65,000 by the time it reaches your heirs.

There are advantages to making a charity the beneficiary of a retirement plan. Because Earlham is a non-profit organization, we pay no tax on the proceeds from retirement funds. For this reason, some savvy planners decide to name Earlham or another charity as the beneficiary of their retirement plans, leaving all the other assets in their will to friends and family who can receive "non-retirement assets" — such as a house, investments, car, etc. —without having to pay income tax.

Naming Beneficiaries

To name or change a beneficiary, simply contact the administrator of the IRA or retirement plan for a change of beneficiary form. If you would like to name  Earlham as beneficiary, simply decide what percentage of the plan's value (0–100 percent) you would like us to receive and name us, along with the stated percentage, on the beneficiary form. Then return the form to the administrator of the plan.

The plan provider may ask for a tax identification number in order to add Earlham as a beneficiary. Earlham's tax id number is: 35-086-8073.

For more information on
gift of retirement plan benefits...

Kelly _tanner _kim
Kim Kelly Tanner
Associate Vice President for
Institutional Advancement/
Planned Giving
(765) 983-1631


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