Maximize your charitable giving this holiday season!

Melissa Kolcz |

Despite these challenging times, charitable giving has been higher than ever. We are fortunate that many of the individuals and families with whom we work are inclined to give back to our amazing community. We've enclosed some tips below on how to maximize your charitable giving and lower next year's tax bill;

  • Donate appreciated non-cash assets; donors who use this approach can generally eliminate the capital gains tax and potentially increase the amount donated to the charity by up to 20%.
  • Give more by donating retirement assets; donors who are in or near retirement might want to consider the following tax-smart tips for making a charitable impact;
    • Make a Qualified Charitable Distribution of IRA assets - individuals currently required to take minimum distributions (RMD's) can direct up to $100K per year tax-free from their IRA's to charities through QCDs.
    • Use a charitable deduction to help offset the tax liability of a retirement withdrawal - A withdrawal offers the additional benefits of potentially reducing a donor's taxable estate and limiting tax liability.
    • Convert retirement accounts to Roth IRAs - use charitable deductions to help offset the tax liability of the amount converted to a Roth IRA.

Click here to see year-end contribution guidelines and timing.

Before making any charitable distributions, we highly suggest consulting with both your CPA and financial advisor. As always, we are here as your trusted resource for any questions you might have.

Warm Regards,

Beacon Financial Planning