2023 Tax-Smart Philanthropy

2023 Tax-Smart Philanthropy

We recommend charitable giving as a tax strategy. Many people have required minimum distributions (RMDs) they need to pull out of their IRAs each year. You can still take the required distributions out, and if you don’t need those funds, you can gift them to a non-profit. For example, if you’re required to pull ten thousand dollars out of your IRA each year, but you already give ten thousand dollars out of your checking account,  you can stop doing that and start gifting it directly from the IRA. That money would not be counted as income so it’s a great way to reduce your overall tax liability.

Something else to consider is a donor-advised fund. With this fund, you can gift money from your RMD to your own fund. That then gets invested like a brokerage account and later, you can choose where you want to donate the money. It doesn’t have to be a requirement of distribution, and it could be any amount. Many of our clients who have sold businesses have put a percentage of that into a donor advised fund and they actually use it around the holidays. Their family members think about which non-profits they want to help during the holidays. Then, they take the dividends from all those contributions and make donations, creating tax-smart philanthropy.

Have more questions? Contact Us

Casey Smith
President, Wiser Wealth Management

Click here to schedule a consultation with one of our financial planners.

Listen to Our Podcast:

learn-more-2024-new

Categories

Recent posts

  • Building Your Financial Vision Board for 2025

Share This Story, Choose Your Platform!

Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.

Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.

To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.

Sign up for our newsletter!

Our latest blogs, podcasts, and educational videos delivered to your inbox weekly.