Tax-qualified retirement plans and individual retirement plans make attractive, valuable gifts to Suffolk. When you leave all or a percentage of your retirement assets to the University, it benefits from the full value because the funds will be removed from your estate and therefore will no longer be subject to estate or income taxes that an individual beneficiary would have to pay.

Albert T.’s gift of retirement assets

Albert T. was approaching his 70th birthday. He had $500,000 in his individual retirement account and soon would be obligated to make annual withdrawals. The withdrawals would be taxed as ordinary income. After his lifetime, the remaining funds in Albert’s IRA would be passed down to his children. Albert realized that as a bequest to his children, the balance of funds in the IRA would be significantly reduced because it would be subject to both estate and income taxes.

Albert decided instead to name Suffolk University as the beneficiary of his IRA and to bequeath other assets to his children. By doing so, he protected the IRA from the combined tax hit and left a legacy for his alma mater.

By gifting his retirement assets to Suffolk, Albert has:

• Avoided income taxes on his IRA
• Avoided estate taxes on his IRA
• Left a sizable gift to his alma mater

Please contact the Office of Advancement to learn more about gifts of retirement assets.