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Gifts of Retirement Plan Assets

Retirement plan assets left to heirs may be subject to as much as a 70 percent tax, greatly reducing the amount available for loved ones. Income taxes, estate taxes, and generation-skipping transfer taxes can contribute to the
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Judy Gruber, ’63, is well aware what can happen when you are the beneficiary of a retirement plan. After federal estate tax, state and federal income tax, and possibly the generation-skipping transfer tax, heirs can literally end up with less than one-third of their loved one’s retirement savings account.
reduction. Often, other assets are best left for heirs and retirement assets for charity.

A bequest gift of your retirement plan allows you to:
  • leave your legacy through funding your favorite Ball State program, establishing a scholarship or perpetual fund, or providing unrestricted dollars to advance the university
  • enjoy an unlimited estate tax charitable deduction while avoiding deferred estate and income taxes
  • benefit both loved ones and Ball State if the foundation receives only a portion of the assets or is named contingent beneficiary

How It Works
You can name the Ball State Foundation as a primary beneficiary for all or part of your retirement plan.

A specific sum or percent can be designated for the foundation with the rest going to loved ones, or you can name the foundation as a contingent (secondary) beneficiary of all or part of the retirement plan. The administrator of your retirement plan can provide the proper forms to sign.

Please consult us for appropriate wording of your retirement plan bequest. Bequests are revocable and may be changed as your circumstances change.

Contact us for personal assistance and learn more about setting up a gift with your retirement plan assets.