Shakespeare Wealth Management, LLC

Planning for Life

262-814-1600
  • Expertise
    • Retirement Planning
    • Tax Planning
    • Investment Management
    • Women and Wealth
    • Selling a Business
    • Death Of A Loved One
    • Legacy Planning
    • Career Change
    • College Planning
    • Insurance Preserve & Protect
  • Our Approach
  • Blog
  • About Us
    • Our Team
    • Community
      • Community Garden
    • FAQ
    • Client Minimums
    • Financial Associations
    • Fee Only Advising
    • Videos
    • Current Openings
  • Contact Us
  • Client Center
    • Shakespeare’s 2021 State of the Union Address
    • Events
    • Monthly Newsletter
    • Photo Gallery
    • Client Website Login
    • 2021 Client Satisfaction Survey
    • Schwab Login
    • Join Meeting
    • Custodian Information
    • Schwab Learning Center
    • Password Management
  • $100 for 100 Fun Fridays
  • Community Garden
  • Food Pantry of Waukesha
  • Playground at Malone Park

Benefits of Donating to Charity Using Your Retirement Assets

February 3, 2021 By Kevin Reardon

By Kevin Reardon, CFP®

How can you use your retirement assets to lower your taxes and make a difference in the world?

Make a tax-free Qualified Charitable Distribution (QCD) gift from your IRA to the charity(ies) of your choosing. This will lower your taxable income AND provide support to organizations that are making the world a better place.  Because the gift is tax-free, your charitable dollars go further than if you wrote a check from your bank account. This, my friends, is the ultimate win-win. You benefit financially from this strategy. The causes the charities support benefit from this strategy. As an extra bonus, giving to charity makes you feel good, which has a positive effect on your own life.

Anyone with an IRA who is over the age of 70 ½ has the ability to make a tax-free gift to a qualified charity.  For IRA owners over age 72, a QCD counts toward your required minimum distribution without incurring a tax liability!

How do you make this happen?

To do this properly, the QCD must come directly from your retirement account and be made payable to the charity.  A QCD typically requires you to sign a Distribution Form.  Requesting a normal distribution from your retirement assets, depositing the funds into your own account, and giving the proceeds to charity is not a QCD.  You could lose the tax benefits associated with a charitable donation in that case.  Note:  next year at tax time, be sure to tell your tax preparer that you made a QCD from your IRA to get the maximum tax benefit.

Is there a limit to how much can be given annually?

The maximum QCD is $100,000 per IRA owner per year.  If spouses each have IRAs in excess of $100,000, they could each give up to $100,000 from their IRA each year.  It’s always best to consult with your financial advisor to make sure you are meeting all the QCD requirements and that your charity qualifies as a QCD recipient.

If you are looking to leave a legacy and make a difference, consider a Qualified Charitable Distribution to the charities of your choosing.

Related

Filed Under: Kevin Reardon, Tax Planning Tagged With: age 70-1/2, cfp, charitable, charity, distribution form, financial advisor, kevin reardon, lower taxes, make a difference, qcd, qualified charitable distribution, Required Minimum Distribution, retirement account, retirement assets, RMD, Shakespeare Wealth Management, tax preparer, tax-free gift, taxes

‹‹ Previous Article

Can the Party for Growth Stocks Continue?

Next Article ››

Common Factors Affecting Retirement Income

Services

  • Retirement Planning
  • Tax Planning
  • Investment Management
  • Women and Wealth
  • Selling a Business
  • Death Of A Loved One
  • Legacy Planning
  • Career Change
  • College Planning
  • Insurance Preserve & Protect

Community

  • $100 for 100 Fun Fridays
  • Community Garden
  • Food Pantry of Waukesha
  • Playground at Malone Park

Important Updates

Calendar

February 2021
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
« Jan    

Subscribe to BLOG via Email

Enter your email address to subscribe to our VIEW FROM THE LAKE blog and receive notifications of new posts by email.

All-Inclusive Services

  • Retirement Planning
  • Tax Planning
  • Investment Management
  • Women and Wealth
  • Selling a Business
  • Death Of A Loved One
  • Legacy Planning
  • Career Change
  • College Planning
  • Insurance Preserve & Protect

Fee Only – Fiduciary

Regulatory Documents

  • Client Relationship Summary
  • ADV Form
  • Privacy Policy
  • Website Disclosure

Connect With Us

Shakespeare Wealth Management, LLC®

N22 W27847 Edgewater Dr.
Pewaukee, WI 53072
262-814-1600

Featured In:

  • New York Times Logo
  • CNN Money Logo
  • Smart Money Logo
  • Advisor One Logo Sm
  • Investors Business Daily
  • Wall Street Journal Logo

Copyright © 2021 · Shakespeare Wealth Management, LLC · All rights reserved

Ask us a question

  • This field is for validation purposes and should be left unchanged.