When passed on to heirs, retirement plans can incur a tax-hit equal to 60 percent or more of the retirement-plan benefits — because this asset faces double taxation. Not only is the amount of the plan reduced by estate taxes, but the recipient must also pay income taxes on the plan.

Retirement plan benefits include assets held in individual retirement accounts (IRAs) and assets held in accounts under 401(k) plans, profit-sharing plans, Keogh plans, and 403(b) plans.

Income taxes on retirement-plan benefits are deferred but not avoided. That means that, as these assets are withdrawn during retirement by the account owner or the account owner's spouse, they are subject to income tax.

Naming WFIU and/or WTIU as a beneficiary for all or for a percentage of your retirement plan proceeds may allow you or your beneficiary to avoid costly income and estate taxes.

To discuss your intentions or to learn more, contact Nancy Krueger at (812) 855-2935 or send an E-mail.

Please notify us if you are including the station in your estate plans. We want to say “Thank you!” Plus, we can help you ensure that your gift makes the biggest possible impact. If you have not written a will yet, regardless of your charitable intent, please consider doing so.

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WFIU/WTIU cannot provide legal or tax advice. Please consult your attorney, CPA, or financial planner before making any decisions regarding your gift planning.