Tax-deferred retirement plans are great sources of retirement income!  However, they are notoriously inefficient in passing wealth to heirs. 

This is because, unlike other property, retirement plan benefits left to children, grandchildren, and other beneficiaries are subject to income taxes, and if applicable, estate taxes at the death of the account owner.  As a result, the taxes can take a large “bite” out of the retirement benefits, sometimes leaving only 20-30% of the remaining asset left to the family.

These taxes can be avoided simply by naming a charity, such as The Lighthouse, on your beneficiary designation forms.  This is a quick and easy way to designate The Lighthouse a beneficiary of your retirement plans! 

During your lifetime, there is no problem naming The Lighthouse as a beneficiary of all or a portion of your accounts upon your death.  By designating The Chicago Lighthouse as the beneficiary of these plans, when you die, your donated retirement plans will pass income and estate tax free. 

Please be sure to notify us if you intend on designating The Chicago Lighthouse as the beneficiary of your retirement plan(s), so that we can help you with the best way to do so.