Retirement Assets / Required Minimum Distribution

In the US, donating part or all of your unused retirement assets from your 401(k), 403(b), pension, or other tax-deferred plan, provides a tremendous gift for which you receive a tax benefit.

In a number of instances, retirement assets are not entirely used during one’s lifetime—50 to 70 per cent of which may be taxed if left to heirs at one’s death. Additionally, after the age of 70.5 years, required withdrawals from your 401 (k) or similar plan are considered part of your taxable income.

With a lifetime or Required Minimum Distribution gift from your 401k or related account in the U.S., you may donate annually from the required withdrawal after the age of 70.5 years.

Benefits of gifts of retirement assets

  • You can avoid potential estate tax or regular income tax on retirement assets
  • Your heirs would avoid income tax on any retirement assets funded on a pre-tax basis
  • You may receive potential estate tax savings from an estate tax deduction

We would be happy to speak with you further about this form of gift giving but always advise you to contact your financial or tax advisor for specific questions.

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