Retirement
plans, when
passed on to
heirs, can
incur as
much as 70
percent in
taxes,
because this
asset faces
double
taxation.
Not only is
the amount
of the plan
reduced by
estate
taxes, but
the
recipient
must also
pay income
taxes on the
plan.
If you plan
to make a
legacy gift
to CBC, you
may want to
consider
naming Community
Boating
Center the
beneficiary
of your
401K,
pension,
IRA, or
other
retirement
plan.
Naming CBC
as the
primary
beneficiary
avoids all
income and
estate taxes
on the
retirement
plan and
allows CBC
to benefit
from the
full amount
of the
assets in
the
distributions.
To make the
designation,
advise your
plan
administrator
of your
decision,
and complete
and sign a
change of
beneficiary
form.
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