Stewarding Well

Faith and Generosity is a big part of life. At Passage Wealth it drives our decision making.

One of the most fulfilling parts of our jobs is guiding people on their financial journey towards the retirement of their dreams. This also allows us to help people maximize their giving strategy both now and in the future.

Giving strategies to consider throughout retirement planning:

Qualified Charitable Distributions/Required Minimum Distributions – At age 70.5, funds can be given directly from a tax-deferred IRA to a 501c3 through a QCD. Instead of giving money from the checkbook that has already been taxed, you can give money that has never been taxed. Once you hit RMD age, donating un-needed Required Minimum Distributions from the same IRA can also be a great strategy.

Appreciated Stock/Mutual Fund/ETF/Real Estate – Appreciated assets can be gifted without long-term gains being realized. You could immediately receive up to a 30% tax deduction of your adjusted gross income. The appreciated asset can be sent directly to the 501c3 or into an account like a Donor Advised Fund. Unused deductions can have a five-year carry forward on deductions that exceed adjusted gross income limits.

The Scholarship Granting Organization of Indiana (SGO) – The SGO grants scholarships and makes private education more affordable for qualifying families. Individuals and businesses can reduce or eliminate their state taxes by donating to the SGO.

Tax Advantages – When it comes to estate planning, gifting IRAs to charity or Donor Advised Funds avoids all federal state tax both for the estate and charity. Depending on the state, state and local tax could potentially be avoided as well. However, these assets would be taxable to a tax-paying beneficiary. Leaving life insurance, ROTH IRAs, and other nonqualified assets may be tax-free to a tax-paying beneficiary. Most people appreciate leaving their estate to family and charity in a tax efficient way.

We encourage you to reach out to see how some of these strategies might play into your financial plan.