Retirement Plans

Assets from your individual retirement account, pension plan, profit sharing plan, stock bonus plan, 401(k) or 403(b) can constitute a large portion of your retirement portfolio.

However, any retirement plan assets you don't use during your lifetime will be subject to income tax in the hands of your beneficiary, regardless of who that person is. If that person is not your spouse, your estate may also have to pay estate tax on those assets. In some cases, the combination of the two can mean that your heirs could receive as little as 30% of the entire value of your account.

Retirement Plan Asset Basics

• Ensures that the University school, program or related foundation (all tax exempt entities) receives the full value of your gift.
• May be easily changed as your plans change.
• Removes assets from your estate, reducing estate tax.
• May allow you to distribute a greater portion of your estate to your heirs.

How to Include U.Va. in Your Retirement Plan:

1. Contact the Office of Gift Planning to discuss your plans and obtain the proper designate language.
2. Request a beneficiary form from your retirement plan administrator.
3. Identify the University of Virginia as a beneficiary of your plan.
4. Include the University of Virginia's Federal tax ID number 54-6001796 on your beneficiary form.
5. Return the completed form to your retirement plan administrator.
6. Provide a copy of your completed beneficiary form to the Office of Gift Planning.

Charitable IRA Rollover Extended to 2009

With the enactment of the Emergency Economic Stabilization Act of 2008(H.R. 1424) on October 3, the Charitable IRA Rollover component of the Pension Protection Act ("PPA") was extended. Potential donors may now continue to support qualified public charities from both their Traditional and Roth IRAs.

Since 2006, U.Va. alumni, parents, and friends have directed gifts of over $2.9 million to the University from their Individual Retirement Accounts (IRAs). More in-depth information on the Charitable IRA Rollover is available through the Partnership for Philanthropic Planning.

• You must be at least 70 1/2 years old.
• The maximum amount transferable per individual in a calendar year is $100,000.
• The gift must be an outright gift that would normally be considered fully deductible.
• The funds must be distributed directly from your plan administrator to the qualified charity (supporting organizations and family foundations do not qualify).
• The funds must be from a Traditional or Roth IRA.
• This opportunity is available until December 31, 2009.

Let us thank you. Notify the University of your retirement plan gift and join the Cornerstone Society.

The University of Virginia does not provide legal, tax or financial advice. We strongly recommend that you consult professional advisors on all legal, tax or financial matters, including gift planning considerations. To ensure compliance with certain IRS requirements, we disclose to you that this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding tax-related penalties.