Leaving a Conservation Legacy through
Retirement Plan Assets
Many friends and members of the American Prairie Foundation are interested in
learning more about the ways in which their tax deferred retirement plan assets
might be used to benefit the environment. Since there are significant restrictions on how and when transfers and distributions
may be made with retirement plans, anyone considering such a gift should review
their situation with their retirement plan administrator, tax professional or
financial advisor.
Retirement plans such as 401(k)s, IRAs or Keough accounts are typically funded
by an individual, their employer, or both. Most retirement plans are made up of assets which are not taxed so long as
the assets remain within the particular retirement plan – in other words, the
plan is generally comprised on untaxed contributions and untaxed earnings. The exception to this is the Roth IRA.
While there are a variety of different types of retirement plans, typically
distributions from the plan become taxable at the time when they are paid out
to the beneficiary or beneficiaries. Disbursement of retirement plan funds generally occurs because the beneficiary
of the plan:
- has retired;
- has become a certain age and is required to take distributions from the
plan;
- has become seriously ill, disabled or otherwise incapacitated; and/or
- has died, and the retirement plan assets must then be distributed to the individual’s estate or other beneficiaries named within the plan.
With the exception of one’s surviving spouse, the heirs who receive distributions
from another person’s tax deferred plan could find themselves subject to as many
as three different types of taxation:
- income tax
- estate tax
- generation skipping transfer tax
The net result is that the value of the asset can be significantly reduced. However, many retirement plans permit a charity to be named as a beneficiary. Upon the death of the retirement plan participant, the interest passes to charity
and is tax-free since charities are generally tax-exempt. Naming American Prairie Foundation as a beneficiary of a tax-deferred retirement
plan is therefore an excellent way to help protect and restore the environment
while meeting your financial planning needs. It is important to verify that your plan allows this provision. Your plan administrator may require the following information:
Legal Designation Information to American Prairie Foundation as a Beneficiary
of Retirement Plans
American Prairie Foundation, a Montana based nonprofit 501©3 corporation,
established on March 8, 2001. Tax ID number 81-0541893. Mailing address at P.O. Box 908, Bozeman, MT 59715
PLANNED GIVING OPTIONS 
