Retirement Plan Assets

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You can preserve more of your estate for the people and organizations that matter most in your life by making a gift of Retirement Plan Assets. During your lifetime, the law requires that certain minimum distributions be taken from your retirement accounts after you reach age 70. These distributions are subject to federal income tax at your current tax bracket. Failure to take the required amount results in a 50% penalty tax on the undistributed amount. At your death, you can roll over your qualified retirement plan without incurring estate tax to your surviving spouse who can continue to receive distributions. When your spouse dies, however, any remaining plan assets are treated as income in respect to a decedent (IRD) and become subject to multiple levels of taxation. Set up a testamentary charitable remainder trust in your will into which you transfer any residual in your retirement plan at your death, naming your surviving spouse or children as income beneficiaries for life, or a term of years, and St. Mary's Health System as the charitable remainder fund.