Retirement Plan Assets

For a growing number of Americans, an Individual Retirement Account (IRA) may be the largest single asset — a nest egg to leave behind for the children’s future. However, you may not realize the massive tax bite the plan is subject to once it is passed on to your heirs.

The legacy intended for your children or other heirs could amount to just 30 cents on the dollar as a result of combined estate tax and income taxes on the IRA. Choose from two solutions:

1. The Charitable Family IRA (SM)
   The Charitable Family IRA (SM) is a retirement plan option that reduces your estate taxes and eliminates the income taxes that would have applied to your IRA. You remain in control of your retirement funds during your lifetime and can choose the issues or organizations your money will support through the foundation in the future.
   
   Once activated, the Charitable Family IRA will provide a stream of income to your children for 20 years and, ultimately, create a permanent charitable legacy at the foundation.
   
   The Charitable Family IRA is a type of charitable remainder unitrust that is exclusive to the California Community Foundation and was created to meet donors' needs.
2. The Charitable IRA
   Naming the California Community Foundation as the beneficiary of your IRA will waive both estate and income taxes and create a permanent legacy in your honor.
   
   Leaving a bequest of an IRA to the foundation can be a sound part of an estate plan, especially if you have already provided for your children, and they could do without the income stream produced by the Charitable Family IRA.