Gifts of Retirement Assets

Contributions to retirement plans can provide an excellent opportunity for growth as they grow tax-free, meaning that the growth or earnings are not taxed annually but can continue to grow. The earnings are taxed when they are withdrawn, but this has allowed more dollars to be invested for more growth. Additional savings can occur if the recipient is in a lower tax bracket when the funds are withdrawn (for example, during retirement) than when the investments were growing.

However, careful planning concerning the withdrawals from retirement funds needs to be done. Not only is there a potential income tax burden, but if there is a balance in your retirement account at your death, there may be estate taxes as well. Estimates are that taxes could eat up as much as 75-80% of retirement assets under certain circumstances.

Using qualified retirement plan funds is an excellent source of assets to fund bequests. By designating Minnesota Public Radio, a Minnesota Non-Profit Organization with offices currently located at 480 Cedar Street, St. Paul, MN 55101 as a beneficiary (it can be a contingent beneficiary after the death of a spouse - see sample bequest language) funds pass to Minnesota Public Radio free of taxes. It is possible to set up the beneficiary as the recipient of the entire remaining funds in the account or establish a percentage to fund the bequest.

Please note - the designation of the station as a beneficiary of retirement fund assets cannot be simply written in your will or trust. The station must be designated as a beneficiary of the retirement plan.

Individual financial circumstances vary. The information on this site does not constitute legal or tax advice. Because of the complexity of estate planning, it is important that your attorney structure your estate and draft your will or truts so as to best carry out your wishes. Minnesota Public Radio cannot act as executor of a donor's estate. Individual support guarantees that substance and values, not commercial considerations, govern our programming. Please include MPR in your will and provide a sound legacy to future generations.

We use reasonable efforts to include up-to-date and accurate information on this site, but make no representations, warranties or assurances as to the accuracy or completeness of the information provided. MPR is not liable for any damages related to your reliance on this Charitable Gift Planning site.