Gifts from retirement plans

Retirement plans, like IRAs, 401(k) or 403(b) plans, Simplified Employment Plans (SEPs) or Keogh plans can provide an easy way of transferring assets to North Star Fund in an estate. Because these plans generate income tax when transferred to anyone other than a spouse or charity, using retirement plans can avoid tax while allowing a donor to make a substantial gift. Designating North Star Fund a beneficiary is easy, free, and quick.

Benefits of making North Star Fund a beneficiary

  • At the end of your lifetime, you know that North Star Fund will receive a direct benefit without any probate delays.

Benefits of transferring your required minimum distribution

  • Sending your required minimum distribution to North Star Fund allows you to take a tax deduction for your gift and offset the tax you would otherwise have to pay.

Retirement Plan (An IRA or 401(k))
Mary, who would like to make a gift through her estate to her favorite charity, has an IRA worth $500,000. She can designate a percentage of her IRA to North Star Fund as a tax-savvy gift. If she gave all or part of her IRA to anyone other than her spouse, the recipient would have to pay income tax on the amount received at his or her tax rate.

Give Part or All of an IRA (for those over 70.5)
Jeff, who is 71, has a large IRA. Because he is over 70, he must withdraw a required minimum distribution from that IRA and pay taxes on the amount he withdraws. If he gives that distribution to North Star Fund, he will receive a tax deduction to offset the taxes he will have to pay. Jeff is able to withdraw funds at the age of 59.5. He is required to withdraw funds at the age of 70.5.

How to make North Star Fund a beneficiary

  1. Secure a beneficiary designation form from the manager of your retirement plan; often you can download the form directly from the plan’s website.
  2. Name North Star Fund as a beneficiary of the plan (you can name North Star Fund as the beneficiary of a percentage of the assets or as a 100% beneficiary). You also retain the right to change beneficiaries in the future.
  3. North Star Fund will send you an acknowledgement of your intent. 

How to give a required minimum distribution

Donors who are over 70.5 and have an IRA can roll over their required minimum distribution to North Star Fund by complete these steps.

  • Contact your plan administrator in writing, requesting a transfer from an IRA to North Star Fund with the following information:
    • Contact name: Kofo Anifalaje, Development Officer
    • Address:
      North Star Fund
      520 Eighth Avenue, Suite 1800
      New York, NY 10018
    • Federal tax identification number: 13-2950801
  • Let North Star Fund know about the transfer including your plan’s account number and the amount you wish to transfer.

If you would like to learn more about this kind of gift, or if you would like to see a confidential example designed specifically for you, please call 212-620-9110 or email Kofo Anifalaje, Development Officer, at Kofo@northstarfund.org.