Individual Retirement Accounts

For many people, their largest asset may be their retirement plan: a 401(k), 403(b), IRA, Keogh, or other qualified account. When you plan the distribution of your estate, it may seem natural to designate a child or other relative as the successor beneficiary of your account after your death and make a legacy gift to The Shelter for Abused Women & Children in another manner.

Did you know the IRS considers the balance left in your retirement account at death to be untaxed income so income tax is imposed in addition to potential estate tax on the retirement account balance? The result could very well mean double taxation. Designating The Shelter as your beneficiary may be a better option.

The Internal Revenue set the 2023 estate tax exemption at $12.9 million per individual. While the estate tax exemption is on schedule to increase each year, the government is taking a fresh look at Individual Retirement Accounts.

When you choose to designate The Shelter as the beneficiary of your retirement plan, the impact of your estate gift is much greater and your heirs are not subject to income tax. The entire balance of the account will help provide life-saving services for the individuals and families served by The Shelter for Abused Women & Children instead of being used to pay taxes. Your heirs may be provided for by different assets that will not cause them a significant tax burden.

In summary, a gift of your retirement plan to The Shelter may be for you if:

• You hold a 401(k), IRA, or other retirement plan
• You want to ensure the most tax-efficient distribution of the assets in your estate
• You prefer to make a gift to The Shelter through your estate plan
• You want to balance your giving between providing for your family and for The Shelter

To name The Shelter as a beneficiary of your retirement plan, simply fill out a Beneficiary Designation form with your retirement plan provider and notify The Shelter of your intent. Use “The Shelter for Abused Women & Children,” P.O. Box 10102, Naples, FL 34101 and Federal Tax ID #59-2752895 when completing your Beneficiary Designation form. CLICK HERE FOR FORM