The IRA Charitable rollover allows individuals age 70 ½ and older to make direct transfers up to $100,000 per year to 501©3 charities without having to pay federal income tax on the transfers. The transfer qualifies as your minimum required distribution after age 70 ½ . Direct rollovers are not counted as income for federal tax purposes. State tax laws may differ so as always consult your tax advisor. 

1) Giving without a Charitable Gift Strategy

Write a check

Get tax deduction in year that you make donation

 

2) Giving after you create a Charitable Gift Strategy

a) Prior to year-end have your CPA estimate your tax liability; write a check

b) Create a Family Donor Advised Fund

Facilitates sustained family giving 

Get tax deduction current year when funded; write checks to charities later as you make  donations 

 

c) Create a Family Foundation

Facilitates sustained family giving

Enables Legacy training for children

Establishes a family giving policy

d) Charitable Giving Trust

Create a Charitable giving trust with an irrevocable gift; charities receive funds as trustee directs

Name Charitable giving trust or individual charities as Insurance policy beneficiaries in will or irrevocable life insurance trust

e) Gift Producing Income to Donors/Residual to Charities

Charitable Gift Annuity

Charitable 

f) Gift producing income to charity with residual to your family beneficiaries

Charitable Lead Trust

 

This list is not meant to be inclusive nor does Cornerstone Wealth Advisors, Inc.  provide legal or tax advice.

Our role is to educate our clients on some of the options available to them and help them find

the right tax and legal professionals to execute their strategy.

 

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Securities offered through Gradient Securities, LLC (Arden Hills, MN 866-991-1539).   Member FINRA/SIPC.  Investment advisory services offered through Cornerstone Wealth Advisors, Inc., a California and Texas Registered Investment Advisor. Gradient Securities, LLC and its representatives do not render tax, legal, or accounting advice.  Insurance products and services are offered through Michael Sellman, Independent Agent.  California Insurance License number 0G40881.  Cornerstone Wealth Advisors, Inc. is not affiliated with Gradient Securities, LLC. Gradient Securities, LLC and Cornerstone Wealth Advisors, Inc. are not affiliated with the Social Security Administration or any government agency. The presence of this website shall in no way be construed or interpreted as a solicitation to sell any products or services to any residents of any state other than where legally permitted. Check the background of this investment professional on FINRA's BrokerCheck ».

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