Gifts of Retirement Plan Assets
Do you have money saved in an employee retirement plan, IRA or tax-sheltered annuity? Retirement plan benefits include assets held in individual retirement accounts (IRAs) and in accounts under 401(k) plans, profit-sharing plans, Keogh plans, and 403(b) plans.
Income taxes on retirement-plan assets are deferred while they accrue, but not avoided. This means that, as these assets are withdrawn during retirement by the account owner or the account owner’s spouse, they are subject to income tax.
When passed on to your heirs, your beneficiaries will owe the income tax which could total up to 35%. Perhaps reason enough to consider giving your loved ones less heavily taxed assets and leaving your retirement plan assets to charity instead.
Naming a charitable organization as a beneficiary for all or for a percentage of your retirement plan remainder will allow your heirs to avoid costly taxes.
Here are 5 Reasons to Share your Assets and Create a Legacy Gift
- Feel good knowing the retirement funds you didn’t spend during your lifetime will go to a cause you love
- Your beneficiary designation won’t reduce the amount of retirement funds available to you
- The gift does not occur during your lifetime—but when you no longer need it!
- This is a simple gift to make — with no need for a lawyer
- If many listeners and viewers left even 5% of their retirement plan assets to WFIU or WTIU, the results could be transformational.
The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney.