What’s the big advantage in making San Francisco Parks Alliance a beneficiary of my retirement plan?A designation in your IRA or other retirement plan may be a very cost-effective way of making a gift to San Francisco Parks Alliance.If you leave your retirement plan to your children, they will have to pay income tax on either a lump sum distribution or the income stream from the plan. San Francisco Parks Alliance does not pay this tax. Here’s an example of what this can mean to your heirs:A widower died a few years ago. He left his $300,000 house to charity and his $300,000 retirement plan to his relatives. He should have done just the opposite. The relatives had to pay income tax on the $300,000 in the retirement plan, an $80,000 cost to them. If they had received the home, and the charity had received the retirement plan payment, no one would have paid income tax.
For more information on the advantages of retirement gifts to San Francisco Parks Alliance, contact Phil Murphy at 415.457.7482 or firstname.lastname@example.org.