Pre-Tax Retirement Plans
Foundation
Retirement Plans
Traditional US retirement plans such as Individual Retirement Accounts, 401(k), and 403(b) plans are funded with pre-tax dollars. The contributions and earnings that you make to this account are not subject to income tax. When you reach the age of 59.5, you can take money out of your retirement account without penalty, but you will be required to pay ordinary income tax on the distributions. If funds remain in the account after you pass away, your beneficiaries may have to pay income taxes on your retirement as well as estate and inheritance taxes, which can reach up to 60% of the total amount in the accounts.
Donating percentages of retirement plans can ensure less is consumed by taxes and more goes towards causes and activities in support of your legacy.
How It Works
- Contact the plan custodian or account holder about a TOD (Transfer on Death) or beneficiary designation form.
- Designate the Optica Foundation to receive your preferred percentage of the plan.
- Send completed form back to the plan custodian or account holder, then contact us at Foundation@optica.org or Kristen Wesley. Deputy Senior Director, Development, at +1.202.416.1441.
Benefits
- Avoid the potential double taxation your retirement savings would face if you designated these savings to your heirs.
- Continue to take regular withdrawals.
- Keep the opportunity to adjust the designation as needs change.
