Retirement Plan Assets

Naming the University of Richmond as a primary or contingent beneficiary of a retirement plan (e.g., IRA, SEP, 401(k), 403(b), ESOP, etc.) may enable you to make a larger gift than you anticipated. This is because income and estate taxes are not imposed when plan assets are distributed to Richmond.

You may also choose to name Richmond as beneficiary of other accounts, such as insurance policies, bank accounts, or brokerage accounts. The value of retirement accounts may increase significantly over time, leading to a built-in tax liability. Leaving these assets to loved ones (other than a spouse) may result in a significant portion of the value being lost to taxes. By using your retirement accounts to make a gift to Richmond, the funds are transferred tax-free and the University realizes the full value of the gift. 

Your retirement account’s plan administrator (the company that manages the account) can help you designate the University of Richmond as a primary or contingent beneficiary on your each of your plan’s beneficiary forms. For fully paid (whole) life insurance policies, you may choose to name Richmond as the irrevocable owner of this policy.