Planned giving:
Retirement Plan Benefits Donations

WHAT?
Giving through qualified retirement plan benefits and Individual Retirement Accounts (IRAs) is a smart and easy way to getting a tax break while making a lasting impact on our students.

Qualified retirement plans include pension plans, other profit-sharing and stock bonus plans including 401(k) plans, employee stock-ownership plans (ESOPs), plans for self-employed persons (Keogh plans) and section 403 (b) tax sheltered annuities for employees of tax-exempt organizations.

The traditional IRA is a similar tax shelter.

WHY?
Donating retirement plan benefits to the Foundation can reduce or eliminate entirely the income tax that you would otherwise pay on retirement plan distributions or withdrawals.

After your lifetime, the gift of an Individual Retirement Account or other retirement accounts can be the most tax-effective way to benefit the Foundation, resulting in the least impact on your heirs. That’s because such accounts are often exposed to both income taxes and estate taxes at a combined marginal rate of as much as 50 percent or even higher.

Naming the Foundation as beneficiary of a retirement plan will provide an estate with a charitable estate tax deduction and avoid income tax on the appreciation in the plan.

HOW?
If you are over 70 ½, you could donate distributions or withdrawals from a qualified plan to the Foundation, thereby reducing or eliminating entirely the income tax that you would otherwise pay.

As a general rule, you are subject to income tax on these withdrawals, but an offsetting charitable deduction is available for the amount of the distribution you give to the Foundation (subject to the 50 percent of adjusted gross income limitation).

To make a gift, name Dallas County Community College District Foundation, Inc. on the plan’s beneficiary designation form. If you’re married, your spouse will need to sign the form waiving rights to the plan proceeds.

> Charitable Remainder Trusts

> Giving Appreciated Securities

> Giving Personal Property

> Giving Real Estate

> Life Insurance Gifts

> Retirement Plan Benefits
   Donations

> Will Bequests

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