IRAs and Qualified Plans
Qualified retirement plans and IRAs make up the majority of estates for many Bucknell alumni and friends. Basic estate-planning principles recommend that you leave appreciated securities and cash to your heirs, but leave your qualified retirement plans and IRAs to a charity. This can significantly minimize income and estate taxes.
After you die, your tax-deferred retirement assets can be subject to both estate and income taxes. Bucknell, your estate and your heirs do not have to pay any taxes on the gift.
When you leave IRA assets to Bucknell, your estate will receive a charitable tax deduction for the value of the IRA, and Bucknell will not have to pay income tax on the accumulation within the plan.
How to designate Bucknell as a recipient of your IRA assets:
- Contact the administrator of your retirement plan and request a beneficiary designation form.
- Designate "Bucknell University, a Pennsylvania charity located in Lewisburg, PA" to receive 100 percent or a portion of the account.
- If you are married, some plans may require the consent of your spouse.
- If you want your gift used for a specific charitable purpose, be sure to contact the Bucknell gift planning staff for language to include on your plan beneficiary designation form.
Note: Retirement benefits and insurance proceeds are distributed to the person listed on the beneficiary designation form, not the person named in your will. Therefore, to ensure that Bucknell benefits from such assets, you must name the University on the plan administrator's designation form.