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Retirement Plan – Give Us Your Most Tax-burdened Asset
What is a gift of retirement plan?
Qualified Retirement Plans may be the most tax-burdened
assets you can own. If you die before you have taken all of your distributions
from your IRA, 401(k), Keogh, SEP or other qualified plan, the balance remaining
in your plan can be subject to multiple taxes that can claim up to 75% of its
value for those in higher estate tax brackets.
Retirement plan assets may be subject to BOTH income and
estate tax when you die. You can roll over your retirement plan at your death
to your surviving spouse without incurring any taxes. When your surviving spouse
dies, however, any remaining plan assets can become subject to multiple levels
of taxation, including federal income tax, federal estate tax (partially offset
by an income tax deduction) and generation-skipping transfer tax (GST) if the
distribution is made to a skip person, such as a grandchild.
This can create a scenario where as little as 25 cents on
the dollar remains for your heirs. Why give your hard-earned retirement assets
to the government when you can give them to support Abington Memorial Hospital Foundation instead?
Here's how:
- If you have no spouse, or your spouse is already adequately
provided for, just fill out a “Change of Beneficiary Form” naming Abington Memorial Hospital Foundation as
the primary beneficiary of your plan. Give other assets to your heirs. Your
plan assets will go tax-free to AMHF and your heirs
will receive their share of your estate without the burden of extra taxes.
If your spouse is living, state law may require that he or she sign a "Spousal
Waiver of Benefits."
- Set up a Charitable Remainder Trust in your will into
which you transfer any residual in your retirement plan at your death, naming
your surviving spouse or children as income beneficiaries for life or a term
of years and Abington Memorial Hospital Foundation as the charitable remainder beneficiary.
This approach will avoid all income tax liability and generate a partial
estate tax deduction.
WARNING: Consult your legal and tax advisors before making
any material decisions based on this information.
Send me a Personal Illustration!
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For more information
If you are considering this gift, please complete the personal illustration form so that we can assist you through every step of the process or contact us at:
Abington Memorial Hospital Foundation
1200 Old York Road
Abington, PA 19001
215-481-4019 | Fax: 215-481-4019
E-mail: LegacyGifts@amh.org
*Notice: Consult your legal and tax advisors before making any material decisions based on this information.
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