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.
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