Did you know that most
retirement plan assets are facing double taxation? Assets
remaining in retirement plans funded with pre-tax dollars are
considered “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!
If you can make other
provisions for your family, there is a better option for your
retirement plan assets - a charitable gift.
To implement your wishes,
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.