While 401(k)s, IRAs and other retirement plans are excellent vehicles for accumulating assets for your use during retirement, much to many people's surprise, they are a far less attractive way to pass an inheritance to loved ones. Here’s why.
The Tax Burden
Retirement plan assets are subject to income taxes when you name anyone other than your spouse as a beneficiary. These taxes can deplete a portion of your hard-earned savings—leaving less for heirs than you had hoped.
A Charitable Solution
If you would like to include a gift to help children and families through your estate, consider the tax-smart strategy of naming Easterseals the beneficiary of all or a portion of your retirement plan assets and leaving other less-taxed assets to your heirs. Because of our tax-exempt status, the full value of your retirement plan assets make a difference and strengthen our life-changing disability and community services.
How It Works
Steps to Take to Make Your Gift
Donating retirement plan assets is easy. And if you need to change or revoke your gift at any point during your lifetime, you can. Simply take these steps:
- Contact your retirement plan administrator for a simple change-of-beneficiary form or simply download the form from your provider's website.
- Decide what percentage (1-100) you would like us to receive.
- Name Easterseals and the gift percentage on the form.
- Return the form to your plan administrator.
- Contact at Easterseals to let us know of your plans.
