Qualified retirement plan assets (IRA’s, 401(k) plans, 403(b) plans, etc) are generally allowed to grow tax free during your working years.  In exchange for this tax deferral, 100% of each withdrawal is generally subject to income taxes.  Upon the owner’s death, the assets remaining are subject to both income and estate taxes. When giving the balance to your heirs, they can be exposed to income taxes up to 35 percent of the funds and estate tax up to an additional 45-55 percent of the funds.  Double taxation can be avoided by naming Kindervelt at Cincinnati Children’s on your beneficiary designation form. Your beneficiaries can be changed as often as you like, without the need for an attorney or changes to your will or trust.