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YOUR RETIREMENT PLAN ASSETS COSTLY TO INHERIT Did you know that most retirement plan assets are facing double taxation? Assets remaining in retirement plans funded with pretax dollars are considered “income in respect of a decedent” at your death. So the amount left to heirs is diminished not only by estate taxes, but the recipient also must pay income taxes on it! If you can make other provisions for your family, there is a better option for your retirement plan assets—a charitable gift after your lifetime. To name Jesuit High School as the beneficiary, first consult your advisor, then instruct the plan administrator of your decision and sign whatever form is required. For an IRA or Keogh plan you administer personally, notify the custodian in writing and keep a copy with your valuable papers. Benefits �� Eliminate all federal income and estate taxes when you name Jesuit as the primary beneficiary. �� Receive partial savings when you give Jesuit a specific amount before giving your family the remainder. �� Name Jesuit as the contingent beneficiary, which allows for greater flexibility. �� Make the most cost-effective gift you can make, saving other less-taxed assets for loved ones. E X A M P L E Bill wants to provide for his children, but he also wishes to leave a charitable gift. Bill decides to pass on income tax–free inheritances such as real estate, cash and life insurance to his heirs and give his retirement plan assets to Jesuit High School. The assets in his account will pass to the school free of any income tax obligation. In addition, Bill’s gift qualifies for an estate tax charitable deduction. Most important, Bill can change his mind at any time about the gift. 8


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