A Tax-Wise Strategy
While 401(k)s, IRAs and other retirement plans are excellent vehicles for accumulating assets for your use during retirement, much to many people’s surprise, they are a far less attractive way to pass an inheritance to loved ones. Here’s why.
The Tax Burden
Retirement plan assets are subject to heavy income and possible estate taxes when you name anyone other than your spouse as a beneficiary. These taxes can deplete a significant percentage of your hard-earned savings–leaving less for heirs than you had hoped.
A Charitable Solution
If you would like to include a contribution to help children and families through your estate, consider the tax-smart strategy of naming Cinema St. Louis the beneficiary of all or a portion of your retirement plan assets and leaving other less-taxed assets to your heirs. Because of our tax-exempt status, the full value of your retirement plan assets would live on to sustain our year-round independent and educational film programs.
Steps to make your retirement contribution
Contributing from your retirement plan is easy. And if you need to change or revoke your designation at any point during your lifetime, you can. Simply take these steps:
- Contact your retirement plan administrator for a simple change-of-beneficiary form.
- Decide what percentage (1–100) you would like us to receive.
- Name Cinema St. Louis and the contribution percentage on the form.
- Return the form to your plan administrator.
- Contact us to let us know of your plans.
