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Gifts of Retirement Assets

CREATE A MEANINGFUL LEGACY THROUGH A
TAX-SAVVY USE OF RETIREMENT ASSETS.

Retirement savings may be a large portion of your estate. However, these assets are also subject to income tax and possibly estate tax. Funding charitable gifts with retirement assets lets you minimize taxes and maximize philanthropic impact while leaving other, less taxed assets of your estate to loved ones.

IRA charitable rollover

  • Starting at age 70 ½, you may make a gift of any amount, up to $100,000 ($200,000 for a couple with separate IRAs) from your IRA without paying the income tax.
  • This gift also satisfies the annual Required Minimum Distribution (RMD) from retirement accounts.
  • Funds should be transferred directly from your financial institution to The UCLA Foundation.
  • This allows you to make an additional tax-free gift, even when you have maximized your charitable deductions for the year.
  • Donor may not receive goods or services in exchange for this gift.

Additional charitable gifts from retirement plans during lifetime

At age 59 ½ or older, when withdrawals no longer trigger a penalty, many donors choose to fund gifts to UCLA with retirement assets and lessen their future estate tax burden.

Simply withdraw funds from your retirement account and report the withdrawals as income on your tax return. If you itemize your deductions, you are allowed a charitable deduction for amounts donated, up to 60% of your Adjusted Gross Income (AGI) for gifts of cash.

Gifts of retirement assets through your estate plans

Distributions from retirement plans can be subject to income and estate taxes and fees when left to an individual other than a spouse.

In contrast, when you designate The UCLA Foundation as a beneficiary of some or all of your retirement plans, 100% of the balance is received tax-free and available to support whichever area of the university you choose. You can establish this type of gift by contacting your plan administrator to obtain a beneficiary designation form and naming The UCLA Foundation (Tax ID # 95-2250801) as beneficiary.

UCLA's Office of Gift Planning can provide guidance for completing this process, including how to specify the exact use of your gift for the department or program of your choice.

Contact Us

800-737-UCLA (8252) • giftplanning@support.ucla.edu

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UCLA's gift planning professionals are happy to provide you and your legal and financial advisors with personalized information about giving through your will or living trust. Any information in this publication is not intended as legal, accounting, or financial advice. Please consult with your tax, legal, and financial advisors to ascertain whether this or other gift plans are in keeping with your own tax and financial needs. Conversations with the university's gift planning team are always confidential and never imply obligation.

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Read the latest news from campus: How campus units are collaborating to provide PPE for medical staff • UCLA researchers and global effort to test therapies • A summary of the "CARES Act" Congress signed into law and Gift Planning news. read more

New Tax Law Changes with the CARES Act

Congress recently passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that includes several charitable tax provisions to encourage giving. These include:

  • A new deduction for donors who do not itemize when filing their tax returns. If you do not itemize but make a cash gift to charity, you will be allowed to take a special tax deduction, up to $300, to reduce your tax liability.
  • An increase in the deduction limit up to 100% of a donor's annual income for cash gifts (previously the deduction was capped at 60% of annual income). If you make a gift, you will be able to deduct more this year.

If you are interested in learning more about these opportunities, please contact UCLA's Gift Planning team at 800-737-8252 or at giftplanning@support.ucla.edu. Please also let us know how we can help you during this time.