Retirement Plan Benefits

If the largest asset in your estate is your Retirement Plan, a 401(k), IRA, Keogh, or other retirement account, you can use your retirement plan to give to The Franklin Foundation in supporting its mission to improve America's innovation base.

 

Did you know the IRS will impose income tax on any balance that you direct to a non-spouse beneficiary? This tax is in addition to the estate tax that will be imposed on the account. For estates fully subject to the estate tax, the result can be that 75% of the value of your retirement plan will be consumed in taxes before your child, relative, or friend receives it.

 

However, there is a sensible charitable alternative: name The Franklin Foundation as the beneficiary of your retirement plan, and then use other assets not subject to income tax to make gifts to your heirs. The Franklin Foundation, as a non-profit organization, will not have to pay income tax on its distribution and your heirs can receive their share of your estate without the burden of extra taxes. Here are some of the benefits of making a gift to us from your retirement plan:

• The deferred income tax which would be due upon distribution to an individual beneficiary is exempted for distributions to a charitable beneficiary.
• The pension or retirement plan account which would normally be subject to estate taxes is instead deducted from the gross estate.
• You can become a Franklin Legacy Circle member.
• Your gift will help ensure that future generations will have access to opportunities in the sciences, technologies, and advanced mathematics. Access that will improve America's innovation base, and ensure our continued ability to remain globally competitive.

 

Donors who wish to make a gift from a retirement plan may do so by simply contacting their plan administrator and designating The Franklin Foundation as beneficiary. If you would like to make a charitable gift through a retirement plan, your plan administrator will ask you to complete a Change of Beneficiary form.

 

For assistance in making The Franklin Foundation your beneficiary, please contact the Major Gifts team for the foundation at majorgifts@franklinfound.org.