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Colorado Estate Planning Blog

Sunday, October 21, 2018

Naming a Charity as Beneficiary on Retirement Plans

      Naming a beneficiary for your traditional retirement plan may be one of the most important financial decisions you ever make. The beneficiary you name will receive the funds remaining in your retirement plan after you die, so you should consider your beneficiary’s future needs.  This is something that you should discuss with a qualified financial planner.

      Generally, required post-death distributions from a traditional retirement plan are taxable. Consequently, your beneficiary will generally be subject to income tax on any distribution that he or she receives from the inherited retirement plan. The post-death distributions will be taxable according to the beneficiary's income tax bracket. By contrast, if you name a qualified charity as beneficiary, that charity will not have to pay any income tax on the retirement plan funds the charity receives after your death.

      The fact that a qualified charity can receive your retirement plan funds tax free after your death can be a compelling reason to consider naming a charity as beneficiary.

      Charities need funds to operate and reach their goals. You can do your part and gain a sense of personal satisfaction by naming one or more charities as beneficiary of your retirement plan. If you truly believe in the mission of the charitable organization that you are providing for, your retirement savings will be well spent.

To learn more about charitable planning:

Attend our FREE Charitable Giving Under the New Tax Laws class on Tuesday, October 30th at 2 pm in Lakewood,

Or: attend our FREE Estate Planning 101 class on

Tuesday, October 23rd at 10 am in Lakewood.

Or:  Call (303) 984-9900 to schedule an appointment or register!

 

            



Sommers Law Group, LLC assists clients throughout Denver, Jefferson County, and Arapahoe County, Colorado.



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| Phone: 303-984-9900

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