Another way to show your support for the Valleys Planning Council is to designate your remaining retirement plan assets to the VPC. By naming the VPC as a recipient of some or all of your IRA, 401(k), 403(b) or other qualified plan, you can make a significant gift to the VPC after your passing (when you no longer require retirement income).
This approach enables you to continue to take regular withdrawals from your retirement account to support your needs, while maintaining the flexibility to change beneficiaries should your family’s needs change during your lifetime.
Naming the VPC as a qualified beneficiary for your retirement plan assets may also provide tax benefits for your estate and heirs.
When you designate the Valleys Planning Council as the beneficiary for all or a portion of your qualified retirement plan assets, those assets pass to the VPC free of any tax. However, when these assets are passed to heirs (excluding your surviving spouse), they are subject to federal income tax and may also be subject to federal estate tax (depending upon the value of your estate) as well as various state, income, and estate and inheritance taxes. Retirement plan assets can be an ideal choice for charitable gifts because they are taxed at ordinary income tax rates (not tax efficient) when they pass to heirs. Designating these funds to a charitable beneficiary like VPC ensures maximum tax efficiency in gifting.
To make the VPC a qualified beneficiary of your retirement plan, simply contact your IRA or retirement plan administrator and request a copy of the Change of Beneficiary Form. You can fill this in as you wish and include the Valleys Planning Council for all or a portion of your plan’s assets.
As with all changes to your estate and financial plans, please confer with your attorney or estate/tax advisor to review your personal circumstances.