GIFT YOUR
RETIREMENT PLAN ASSETS

Did you know that your retirement plan assets are facing double taxation? If you leave retirement assets to your heirs, you’ll generate “income in respect of a decedent.” So not only is the amount diminished by estate taxes, but the recipient also must pay income taxes on it! The assets may also be subject to generation skipping transfer taxes.

Undoubtedly, your decision of who gets the remainder depends on your family members’ circumstances. Their needs come first. If you can make other provisions for them there’s a better option for your retirement plan assets – a charitable gift.

Your Retirement Plan May Offer Tax Advantages

Individual account plans – such an IRA, Keogh, or 401(k) account – resemble tax-sheltered savings accounts. If a participant dies before the entire account has been distributed, the remaining balance can be transferred to an heir or to a charitable organization like the Seventh-day Adventist Church.

The principal advantage of donating retirement plan assets to the Church is that you avoid all income and estate taxes, whereas giving the assets to individual heirs may trigger a total effective marginal tax rate that is incredibly steep – even exceeding 75% in some cases.

Many Ways to Give

If you’ve already provided for your relatives in your estate plan, simply name the Church as the primary beneficiary of your retirement assets. However, if you want to make sure you don’t shortchange your family, you can:

� Name the Church as the beneficiary of part, or even all, of the balance remaining after your spouse’s or another beneficiary’s lifetime.

To implement your wishes, advise 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 of your valuable papers.