Money in a tax-deferred retirement plan–such as an IRA or 401(k)–that is left to an individual’s heirs can be subject to both income and estate taxes. Taxes can erode a substantial part of these assets.
If money in such plans is left to the AHRC New York City Foundation, however, the Foundation receives the full amount. You may therefore wish to consider providing for loved ones from other assets and making the AHRC New York City Foundation the beneficiary or co-beneficiary of your retirement-plan assets.
Click here to read more about estate gifts of retirement plan assets in the the latest issue of our Giving Matters newsletter.