Retirement Plan

Millions of Americans take advantage of generous tax incentives and save for retirement using retirement plans every year. Many of these same people are surprised to learn that these retirement assets - 401(k), 403-(b), IRA, Keogh, or other such accounts - will be included in the total value of their estate at death for estate tax purposes. If left to a non-spouse beneficiary, these assets are not only subject to estate tax, but their heir(s) will have to pay income tax as they withdraw the funds.

To avoid this "double taxation" - which in some cases can amount to as much as 70% of the asset - you can name the IEEE Foundation as the beneficiary of your retirement plan and use other assets not subject to income tax to make gifts to your heirs. 

Unlike making changes to your will or trust, changing the beneficiary of your retirement plan is simple. All you have to do is contact your plan administrator, request a change of beneficiary form, fill it out, and send it in. You will have the option of naming the IEEE Foundation as the primary or contingent beneficiary. Contingent beneficiaries receive the funds if the primary beneficiary (most often your spouse) predeceases you.