Gifts of Retirement Assets

At a glance:

  • Make a meaningful gift
  • Avoid potential significant taxes on undistributed balance
  • Provide for heirs with other assets not subject to onerous taxation

Contributions to retirement plans can provide an excellent opportunity for growth as they are invested tax-free. The earnings are taxed when they are withdrawn, but this has allowed more dollars to be invested for more growth. Additional savings can occur if the recipient is in a lower tax bracket when the funds are withdrawn (for example, during retirement) than when the investments were growing.

However, careful planning concerning the withdrawals from retirement funds needs to be done. Not only is there a potential income tax burden, but if there is a balance in your retirement account at your death, there may be estate taxes as well. Estimates are that taxes could eat up as much as 75-80% of retirement assets under certain circumstances.

What Does Public Television
Mean To Me?

Ed Mapp - It affects our culture

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Using qualified retirement plan funds is an excellent source of assets to fund bequests. By designating MPT Foundation, Inc. as a beneficiary (it can be a contingent beneficiary after the death of a spouse - see sample bequest language) funds pass to Maryland Public Television free of taxes.

Please note - the designation of the station as a beneficiary of retirement fund assets cannot be simply written in your will or trust. The station must be designated as a beneficiary of the retirement plan.

Everyone's personal circumstances are different, so please consult your tax advisor concerning the use of qualified retirement funds. We would be glad to make suggestions that could be effective in accomplishing you and your family's needs and benefit Maryland Public Television as well.


Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Planned Giving section has been developed for Maryland Public Television by Future Focus. Please report any problems to section webmaster.