Retirement plan assets can be one of the most favorable assets to donate to charity because the assets are subject to a two-tier tax upon the owner’s death.  Retirement plan assets are subject not only to estate taxes, but also income taxes.  This two-tier tax structure can subject retirement plan assets to tax rates as high as 80 percent.  Given the high tax structure, donors can use their retirement plan assets to maximize their charitable contributions with a small cost to their heirs.  Please speak with your estate planning attorney for more information as to how this type of charitable giving might benefit you.

 

          Please consult your legal and/or tax professional for all determinations of value and/or tax benefit.

 

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Charitable IRA Provisions of the 2006 Pension Protection Act

by

Richard S. Scolaro, Esq.

Scolaro, Shulman, Cohen, Fetter & Burstein