ENG2333. Tax Smart Charitable Giving, Especially with Retirement Assets (TAX, EST)

After reviewing the challenges caused by the 2017 Tax Cuts and Jobs Act to get income tax savings from charitable gifts, this session will offer tax-saving strategies to overcome those challenges, including “bunching” gifts with donor advised funds and making qualified charitable distributions (QCDs) from IRAS. Beginning in 2023, donors can transfer up to $50,000 tax-free from an IRA for a charitable gift annuity. The session will also review the pros and cons to family members of naming a tax-exempt charitable remainder trust as the beneficiary of an IRA.

Learning Objectives:

• Compare the tax advantages of charitable gifts of appreciated stock versus gifts of cash, and the advantages of donor advised funds over outright gifts to charities
• Analyze when making charitable gifts from an IRA will be better than establishing a donor advised fund
• Identify when a donor should take advantage of the new law to use up to $50,000 of IRA assets to acquire a charitable gift annuity
• Determine when naming a charitable remainder trust as the beneficiary of an IRA will provide more benefits to family members than naming the family members as the beneficiaries, and when it won't