1 The 60% limitation excludes giving to private non-operating foundations.
2 RMD Age is (a) age 70 ½ (for individuals born before July 1, 1949), (b) age 72 (for individuals born after June 30, 1949 but before 1951), (c) age 73 (for individuals born after 1950 but before 1960), and (d) age 75 for all others – note, apparent drafting error in the statutory language, makes it unclear when age 75 starts to apply in lieu of age 73, but it appears age 75 is intended to apply to individuals born after 1959.
3 Inherited IRAs are also eligible for QCDs if the applicable conditions have been met (e.g, you must be at least 70½)
4 National Philanthropic Trust “The Tax Advantages of Donor-Advised Funds” Accessed December 4, 2023 https://www.nptrust.org/what-is-a-donor-advised-fund/daf-tax-consideration/
5 These features also create the possibility for donors to implement a “bunching” strategy, which may be tax-efficient if you are anticipating a large capital gain or income event (such as the sale of a home or business) in a particular year. For example, if you donate a regular amount to a given qualified public charity on an annual basis, you could instead donate multiple years of contributions to your DAF and potentially offset the large capital gain or income increase. This could allow you to take a deduction for the full amount (subject to adjusted gross income limitations) in the year you make the donation, and then recommend that the DAF make annual grants to your charity of choice per your regular annual schedule.
6 Remember that the “wash sale” rules won’t let you recognize a tax loss on a current basis if you buy the same or substantially identical securities within 30 days before or after the sale that generates the tax loss.
7 The Secure Act of 2022 increased the Required Minimum Distributions (RMD) age from 72 to 73 beginning in 2023, and to 75 beginning in 2033.
8 On Jan 1, 2026, unless legislative change is enacted, the gift and estate tax exemption reverts to its pre-Tax Cuts and Jobs Act amount of $5 million, subject to inflation adjustments.
9 IRS. “IRS Provides Inflation Adjustments for Tax Year 2024,” https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024 Accessed November 28, 2023
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