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Gifts from Retirement Plans at Death

Gifts from Retirement Plans at Death Diagram

Benefits

  • No federal income tax is due on the funds that pass to NYU Langone
  • No federal estate tax on the funds
  • You make a significant gift for the programs you support at NYU Langone

Special note: Call or e-mail us to tell us of your intent, and we will assist you with the details of the transfer.

How It Works

  1. You name NYU Langone as beneficiary for part or all of your retirement-plan benefits
  2. Funds are transferred by plan administrator at your death

Retirement-plan benefits often make an excellent choice for funding a testamentary charitable gift to NYU Langone. Not only will such a gift escape federal income tax, but it will also avoid any potential federal estate tax. This combination of income taxes and estate taxes could result in a tax hit of more than 63% of the retirement-plan benefits.

If, for example, you have designated your children to be the beneficiaries of $100,000 of your retirement-plan benefits, and your estate is subject to federal estate taxes, your children could lose $40,000 to federal estate taxes and as much as an additional $23,760 to federal income taxes for a total reduction in benefits of $63,760. If, however, you designate NYU Langone as the beneficiary of that $100,000, the full amount will pass to us with no reduction in benefits.

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Disclaimer: The information provided is general in nature and may not apply to all individuals. This information does not constitute legal or tax advice. We urge you to consult with your personal tax, financial, and legal advisors concerning the specific consequences of making gifts to NYU Langone Health. We would be pleased to discuss, in confidence, ways in which you may support NYU Langone Health.