401k and IRA accounts
Assets held in 401k and IRA accounts require special consideration in your financial and estate planning.
The law requires that you pay income tax on any withdrawals from the accounts, diminishing their value for you and your heirs. If you leave retirement assets to family members in your estate plan, an estate tax may be levied as well. This double taxation could leave as little as 36% of the asset for your heirs.
By donating retirement assets to Grand Rapids Community Foundation during your lifetime, you can remove them from your estate, preserve more of their value, and receive a federal deduction for the gift.
© Grand Rapids Community Foundation - 185 Oakes Street SW - Grand Rapids, Michigan 49503 - 616.454.1751
