Retirement Accounts

Retirement Accounts

Under current tax law, retirement accounts generally cannot be transferred directly to a charity during one's lifetime. Nonetheless, a donor can name the Monticello Area Education Foundation as a primary beneficiary of the account with the value being fully deductible for estate tax purposes. Furthermore, income in respect of a decedent (IRD) is avoided since the foundation is a tax-exempt entity. IRD is taxable to noncharitable beneficiaries, even if no estate tax is due.