What makes retirement plan assets great for donations is that they support Honor Flight Chicago while also providing your loved ones with tax relief.
If you have money in a retirement plan at work, IRA or tax-sheltered annuity, it may be subject to federal and state estate taxes. Most of these plans contain income that has yet to be taxed, so when money is distributed, the beneficiary will owe federal and state income taxes.
However, because Honor Flight Chicago is a 501(c)3 non-profit organization, we are tax-exempt and would receive the full amount you designate for us. By choosing to contribute part or all of your retirement plan assets to Honor Flight Chicago, not only will you support our mission, but you will save your loved ones from being taxed on the proceeds.
There are a variety of ways to allocate retirement assets to Honor Flight Chicago, including:
Name us as a beneficiary of your plan.
You are able to designate Honor Flight Chicago as the primary beneficiary for a percentage or specific amount.
Fund a testamentary charitable remainder trust.
By setting up a charitable remainder trust with your retirement plan assets, the proceeds of the plan will go to the trust. Income from the trust is paid to a beneficiary for a set term; once the term expires, the remaining assets would go to Honor Flight Chicago. This option provides tax benefits and income benefits, and also allows you to provide your loved ones with added support.
A donor advised fund. When retirement plan assets pass to your heirs, they can be subject to federal income and estate taxes. This combined income and estate tax burden can be substantial and greatly reduce the value of the intended gift. Instead, you can designate a donor advised fund as the beneficiary of all or a portion of your retirement plan assets. Your fund receives the full amount of the gift and bypasses any federal taxes.
- Contact Honor Flight Chicago’s administrative office at 773-227-VETS (8387) for additional information.
- Seek the advice of your financial or legal advisor.
- If you include Honor Flight Chicago in your plans, please use our legal name and federal tax ID.
Legal Name: Honor Flight Chicago
Address: 938 West Montana St., Chicago, IL 60614
Federal Tax ID Number: 26-1978570
The information on this website is not intended as legal or tax advice. Please consult an attorney or tax advisor for such advise.