Gifts of Retirement Plan Assets
Retirement plans, when passed on to heirs, can incur as much as 70 percent in taxes, because this asset faces double taxation.
Not only is the amount of the plan reduced by estate taxes, but the recipient must also pay income taxes on the plan.
If you plan to make a legacy gift to BIDMC, you may want to consider naming Beth Israel Deaconess Medical Center the beneficiary of your 401K, pension, IRA, or other retirement plan.
Naming BIDMC as the primary beneficiary avoids all income and estate taxes on the retirement plan and allows BIDMC to benefit from the full amount of the assets in the distributions.
To make the designation, advise your plan administrator of your decision, and complete and sign a change of beneficiary form.
