IRA and Retirement Plan Gifts
You may designate UAlbany as a primary, partial or contingent beneficiary of your IRA or other retirement plan, such as a 401(k) or 403(b). Such a designation has significant tax advantages since UAlbany is tax-exempt and, thus, the full amount received can be used as you direct and you may avoid both income and estate tax for the gift value. IRA and retirement assets left to individuals may be taxable to them.
Such designations are made through the trustee of the retirement plan or the custodian of your IRA. Once made, you still retain the right to change the designation at your discretion.
Example: Mr. Moore has an IRA valued at a bit over $100,000 and he has named his wife as the primary beneficiary. He revised the beneficiary designation to name UAlbany as the contingent beneficiary if his wife should predecease him or if they both have a fatal accident. The proceeds would be used to establish an endowment in their name or as directed.