In some cases, leaving your qualified retirement account to a charity and other assets to your heirs can save on taxes. An important part of establishing an IRA, 401(k), 403(b) or other qualified plan is naming a beneficiary. On the positive side, this helps ensure that upon your death, any remaining account balance will transfer directly to your heirs without going through probate. On the negative side, your heirs could lose up to 80 percent of the account’s balance to income and estate taxes, both federal and state.
