A retirement plan such as a 401(k) or an IRA can face double taxation if it is the largest asset in your estate. This means your retirement plan may be diminished by estate taxes, and if the recipient is someone other than your spouse, that person must pay income tax on it.
If you can make provisions to give assets not subject to income tax to your heirs, consider making Hampshire College the beneficiary of all or a portion of your retirement plan. By giving your plan to the College, you and/or your heirs avoid paying income and estate taxes on it.
To implement your wishes, simply advise the plan administrator of your decision and sign the form the plan requires. For an IRA or another plan you administer personally, notify the custodian in writing, and keep a copy with your other valuable papers.
Once we receive confirmation of your gift, you will enjoy the benefits of membership in the Harold Johnson Society.
To learn more, please contact us.