Retirement Plan Assets

RETIREMENT PLAN ASSETS including corporate pension and profit-sharing plans, Keogh plans, 401(k) plans, 403(b) plans, and Individual Retirement Accounts (IRAs) may be used to create or to add to an endowment fund in the Jewish Community Foundation of the Jewish Federation of Greater Pittsburgh.

How Does It Work?

You name the Federation as a full or partial beneficiary of your retirement plan assets by notifying your plan administrator and completing a “change of beneficiary” form. You can also use retirement assets now or at your death with planned giving vehicles such as charitable remainder trusts or charitable gift annuities.

Alternatively, you may use your retirement plan assets to create a charitable remainder trust or charitable gift annuity upon your death. The trust or annuity may provide income to one or more designated beneficiaries for life or a term of years. When the trust or annuity ends, the Foundation receives the remaining assets, which you designate to a particular cause or endowment.

The proceeds can be used to create or to augment an unrestricted endowment, a Lion of Judah Endowment or Legacy Fund, a special purpose fund, a donor-advised fund or a supporting foundation.

What Are The Benefits?

• You may be able to make a more significant gift than you thought possible.
• Contributing your retirement plan assets is tax efficient, as it may save both income and estate taxes.
• Designating a charitable beneficiary is easy to administer.
• You provide a permanent source of funding for the Federation’s Community Campaign or for a cause you care about most, ensuring that critical support for services to the Jewish community continues for the future.

WHAT ARE THE EXAMPLES?

• You can create a Qualified Charitable Distribution (QCD). A QCD is a direct transfer of funds from your IRA custodian, paid to the Jewish Federation of Greater Pittsburgh. QCDs can be counted toward satisfying your required minimum distributions (RMDs) for the year, if certain rules are met. QCD’s are allowed for individuals who are 70 ½ years old and up, to donate up to $100,000 in total to one or more charities. QCDs are not allowed to be distributed to donor-advised funds.
• In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare.