Retirement Plan Assets

If the largest asset in your estate is your Retirement Plan—your 401(k), IRA, Keogh, or other such accounts—you may be surprised to learn that the IRS will impose income tax on any balance that you direct to a non-spouse beneficiary. This tax is in addition to the estate tax that will be imposed on the account. For estates fully subject to the estate tax, the result can be that 75% of the value of your retirement plan will be consumed in taxes before your child, relative, or friend receives it.

There is a sensible charitable alternative: name Girl Scouts of the USA as the beneficiary of your retirement plan, and then use other assets not subject to income tax to make gifts to your heirs. Girl Scouts won't pay income tax on its distribution and your heirs will receive their share of your estate without the burden of extra taxes. Here are some of the benefits of making a gift from your retirement plan:

• The deferred income tax which would be due upon distribution to an individual beneficiary is exempted for distributions to a charitable beneficiary.
• The pension or retirement plan account which would normally be subject to estate taxes is instead deducted from the gross estate.
• You can become a Legacy Circle member.
• Your gift will help ensure that future generations of girls will grow strong and reach their full potential in Girl Scouting.

Donors who wish to make a gift from a retirement plan may do so by simply contacting their plan administrator and designating Girl Scouts of the USA as beneficiary. If you would like to make a charitable gift through a retirement plan, your plan administrator will ask you to complete a Change of Beneficiary form. You may need the following information:

Legal Name:
Girl Scouts of the USA

Legal Address:
420 Fifth Avenue
New York, NY 10018

Employer Identification Number (EIN): 13-1624016

For more information on how to treat your retirement plan as a gift, contact us at plannedgiving@girlscouts.org.