Most retirement plans, including 401(k)s and IRAs, are income tax–deferred,

meaning that income tax is not paid until the funds are distributed to you, or upon

your death. This taxation makes retirement assets among the most expensive

assets to distribute to loved ones.

Because they are subject to income taxes to your beneficiaries, retirement assets

make ideal gifts to tax-exempt charitable organizations. Otherwise, the income taxes

on retirement assets you leave to your loved ones can be as high as 40 percent.

This means that an IRA worth $100,000 will be worth only $60,000 by the time it

reaches your heirs.

On the other hand, the naming of a charity as the beneficiary of retirement assets

upon death generates no income taxes. The Chautauqua County Humane Society is

tax-exempt and eligible to receive the full amount and bypass any income taxes.

This means that in the above example, the Humane Society would receive the full

$100,000 benefit.

Contact your plan’s administrator, financial advisor or we can help change this for

you. Specify The Chautauqua County Humane Society as a beneficiary. Our

Federal Tax ID number is 16-6000221.

If you have any questions, please email Holly Mullard at hmullard@chqhumane.org or call 716-665-2209 x214.