Gifts of Retirement Plan Assets Q&A

What are the advantages of contributing retirement plan assets?

For taxable estates, retirement plan assets left to heirs may shrink as much as 70 percent through taxation. Not only does your estate pay tax on any qualified retirement plan assets, but your heirs will owe income tax on those assets when distributed.

By naming The Dayton Foundation as the beneficiary of your retirement account, in part or in full, and by leaving other assets to your heirs, you actually can give more to your heirs and to charity. Because The Dayton Foundation is a qualified public charity, no income tax would be due, and the assets will escape estate taxes.

When you give the remainder of your retirement plan, you retain the use of your assets during your lifetime, while passing any remaining funds free from taxation.

How do I make a gift of retirement plan assets?

We recommend that you start by discussing your overall estate plan with your financial advisor or legal counsel.

If you decide that this is the right choice for you and your family, obtain a change of beneficiary form from your retirement plan’s administrator. Then direct your gift to The Dayton Foundation to establish a charitable fund of your choice or to an already established Foundation fund. Do not designate the gift through your will; otherwise the assets may be included in your taxable estate.

Another option is to designate the Foundation as a partial beneficiary of your retirement plan and direct the balance to your heirs.

As always, please feel free to contact a member of our Development Department at (937) 222-0410 to discuss the details of such a proposed gift.

With any gift arrangement, we recommend that you consult with your financial planner or attorney first. All gifts are subject to approval by the Foundation’s Gift Acceptance Committee and the Governing Board.

For more information or to discuss a gift plan that works for your individual needs, contact a member of our Development Department at (937) 222-0410.

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File date: 09.11.23


Michelle Lovely

“Did you know a deferred charitable gift annuity could be used to offset your taxable income today, then provide funds for your favorite charities after your lifetime? Contact me for more about this and other planned giving options.”
Michelle Lovely, senior vice president, Development and Donor Services, (937) 225-9948

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