Retirement Plan Assets

Tax Relief for Loved Ones

Retirement plan assets are a great way to support the work of the United States Holocaust Memorial Museum because they not only help support our mission, but they also can provide tax relief for your loved ones.

Money in an employee retirement plan, IRA, or tax-sheltered annuity has yet to be taxed. When a distribution is made from your retirement plan account to a beneficiary, that person will owe federal income tax.

Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to the United States Holocaust Memorial Museum to support our work. As a nonprofit organization, we are tax-exempt and will receive the full amount of what you designate. You can take advantage of this gift opportunity in the following ways:

Name us a beneficiary of your plan. This requires you to update your beneficiary designation form through your plan administrator. Here you can designate the United States Holocaust Memorial Museum as the primary beneficiary for a percentage or specific amount. You can also make the United States Holocaust Memorial Museum the contingent beneficiary so that the Museum will receive the balance of your plan only if your primary beneficiary doesn't survive you.

Make a qualified charitable distribution (QCD). A QCD allows individuals who are 70½ years old or more to take advantage of a simple way to help our mission and receive tax benefits. Each eligible individual taxpayer can give any amount up to $100,000 annually from their IRA directly to a qualified charity such as the United States Holocaust Memorial Museum without having to pay income taxes on the distribution. This popular gift option is also commonly called the IRA charitable rollover.

Set up a charitable gift annuity. If you are 70½ or older, you may now make a one-time election for a qualified charitable distribution of up to $53,000 (without being taxed) from your IRA to fund a life-income gift. This gift provides you (and a spouse, if you wish) with stable lifetime income that is unaffected by the markets. After your lifetime, the remainder of the gift annuity becomes your legacy at the Museum. Some limitations apply, so contact us for more details and a personalized illustration at no obligation.

Fund a testamentary charitable remainder trust. When you fund a charitable remainder trust with your heavily taxed retirement plan assets, the trust will receive the proceeds of your plan. The trust typically pays income to one or more named beneficiaries for life or for a set term of up to 20 years, after which the remaining assets in the trust would go to support the United States Holocaust Memorial Museum. This gift provides excellent tax and income benefits for you while supporting your family and our work.

Use a donor advised fund. When retirement plan assets pass to your heirs, distributions are taxed as ordinary income. This income tax burden can be substantial, greatly reducing the value of the intended gift. Instead, you can designate your donor advised fund as the beneficiary of all or a portion of your retirement plan assets. Your fund receives the full amount of the gift and bypasses any federal taxes.