Tax Relief For Loved Ones

Retirement plan assets are a great way to support the work at Cal Poly because they not only help support our mission, but they also can provide tax relief for your loved ones.

Money in an employee retirement plan, IRA or tax-sheltered annuity has yet to be taxed. When a distribution is made from your retirement plan account to a beneficiary, that person will owe federal income tax.

Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to Cal Poly to support our work. As a nonprofit organization, we are tax-exempt and will receive the full amount of what you designate. You can take advantage of this gift opportunity in the following ways:

Name us a beneficiary of your plan. This requires you to update your beneficiary designation form through your plan administrator. Here you can designate Cal Poly as the primary beneficiary for a percentage or specific amount. You can also make Cal Poly the contingent beneficiary so that Cal Poly will receive the balance of your plan only if your primary beneficiary doesn't survive you.

A qualified charitable distribution (QCD) allows individuals who are 70½ years old or older to take advantage of a simple way to help our mission and receive tax benefits in return. You can give any amount up to $100,000 annually from your IRA directly to a qualified charity such as Cal Poly without having to pay income taxes on the distribution. This popular gift option is also commonly called the IRA charitable rollover.

Set up a charitable gift annuity. If you are 70½ or older, you may now make a one-time election for a qualified charitable distribution of up to $50,000 (without being taxed) from your IRA to fund a life-income gift. This gift provides you (and a spouse, if you wish) with stable lifetime income that is unaffected by the markets. After your lifetime, the remainder of the gift annuity becomes your legacy at Cal Poly. Some limitations apply, so contact us for more details and a personalized illustration at no obligation.

Fund a testamentary charitable remainder trust. When you fund a charitable remainder trust with your heavily taxed retirement plan assets, the trust will receive the proceeds of your plan. The trust typically pays income to one or more named beneficiaries for life or for a set term of up to 20 years, after which the remaining assets in the trust would go to support Cal Poly. This gift provides excellent tax and income benefits for you while supporting your family and our work.

A donor advised fund. When retirement plan assets pass to your heirs, distributions are taxed as ordinary income. This income tax burden can be substantial, greatly reducing the value of the intended gift. Instead, you can designate your 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.

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Next Steps

  1. Contact Cal Poly's Office of Gift Planning at 805-756-7125 or plannedgiving@calpoly.edu for additional information.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Cal Poly in your plans, please use our legal name and federal tax ID.

Legal name: California Polytechnic State University Foundation
Address: Heron Hall, Building 117, San Luis Obispo, CA 93407-0444
Federal tax ID number: 20-4927897

Plan a Charitable Gift Today

Take advantage of this tax-smart gift opportunity. Download our FREE guide Make the Most of Your Retirement Plan Assets: Avoid Taxation and Support Our Work.

Personal Estate Planning Kit

Our Top Free Resource

This comprehensive estate planning kit helps you protect your family and establish your legacy. FREE!

Download My Kit