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For Donors & Families

Roth IRA vs. 401k vs. OCLAT:
There's No Contest

You already know the Roth and 401k. Here's why the OCLAT operates in an entirely different league — especially for high-net-worth families who want to give and grow at the same time.

Compare
OCLAT
Optimized Charitable Lead Annuity Trust
Roth IRA
Individual Retirement Account
401(k)
Employer-Sponsored Retirement Plan
Feature OCLAT Roth IRA 401(k)
Contribution limit No limit — $1M, $10M, $100M+ $7,000/year ($8,000 if 50+) $23,500/year ($31,000 if 50+)
Income eligibility No income restriction Phased out above $161K (single) / $240K (married) No limit, but employer plan required
Upfront tax deduction Yes — dollar-for-dollar, up to 30% AGI None — contributions are after-tax Yes — pre-tax contributions reduce taxable income
Tax-free growth Yes — grows inside trust for 15–30 years Yes — grows tax-free inside account Tax-deferred — taxed upon withdrawal
Tax-free transfer to heirs Yes — remainder passes estate-tax-free Partial — inherited Roth must be withdrawn within 10 years No — fully taxable to heirs as ordinary income
Asset protection Immediate — creditor-proof from day one Varies by state; limited federal protection Federal ERISA protection from creditors
Estate tax impact Removes assets from taxable estate entirely Roth balance is included in taxable estate Balance included in taxable estate
Charitable impact $1M contribution → $3M+ to charity over term None — no charitable component None — no charitable component
Family wealth after 30 years $5M+ returned tax-free (from $1M) ~$210K at 8% growth (from $7K/yr, 30 yrs) ~$705K at 8% growth (from $23.5K/yr, 30 yrs, pre-tax)
Generational wealth transfer Dynasty trust capable — multi-generation 10-year drawdown rule for non-spouse heirs 10-year drawdown rule + taxed as income to heirs
IRS track record 250+ funded — zero known audits* Established since 1997 Established since 1978
The 30-Year Comparison
Illustrative · 8% Growth
OCLAT — $1M Contributed
Contributed$1,000,000
Tax deduction$1,000,000
Tax savings (37%)$370,000
Total to charity$3,000,000+
Family remainder$5,000,000+
Estate tax on transfer$0
Roth IRA — Max Contributions
Annual contribution$7,000
Tax deduction$0
Tax savings$0
Total to charity$0
Account value (30 yrs)~$210,000
Heir withdrawal rule10-year drawdown
401(k) — Max Contributions
Annual contribution$23,500
Tax deduction$23,500/yr
Tax savings (37%)$8,695/yr
Total to charity$0
Account value (30 yrs)~$705,000
Heir withdrawal rule10-yr drawdown + taxed as income
The Roth IRA and 401(k) are solid retirement tools — but they're constrained by annual limits ($7K and $23.5K respectively), income caps, and unfavorable inheritance rules. The OCLAT has no contribution limit, no income restriction, delivers a dollar-for-dollar tax deduction, sends $3M+ to your chosen charities, and returns $5M+ to your family tax-free. For families with $1M+ in philanthropic capacity, the OCLAT isn't an alternative to retirement accounts — it's a different category entirely.
Retirement Accounts Are for Retirement. The OCLAT Is for Legacy.
The Roth and 401(k) are designed to fund your retirement. The OCLAT is designed to fund your legacy — the university building, the scholarship, the family trust that outlives you by generations. They're not competing tools. But if you have $1M+ in philanthropic intent, the OCLAT does something retirement accounts simply cannot: give generously and keep your family whole.

See What an OCLAT Means for You

Get a personalized model based on your assets, age, and goals. No cost, no commitment — just the numbers.

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*IRS Circular 230 Disclosure: Audit risk should not be considered when making a tax planning decision; we cannot guarantee the absence of an audit.