How to Save Taxes While Making an Impact

Welcome back to the Dollar Wise Podcast. Jason Gabrieli is joined by Andrew Barnhardt from the HFM team as they explore tax strategies related to charitable giving, focusing on the benefits of Qualified Charitable Distributions (QCDs) from IRAs. The discussion covers how changes in the tax code impact charitable deductions, who can benefit from QCDs, and key considerations when planning your charitable contributions. This episode is designed to help listeners optimize their charitable giving while maximizing tax benefits.

Tune into this episode to also learn:

• How changes in the standard deduction impact your charitable contributions.
• The eligibility criteria and benefits of making a Qualified Charitable Distribution.
• Strategic planning for minimizing required minimum distributions (RMDs) through charitable giving.
• Common pitfalls and best practices when executing QCDs.

What we discussed

• [00:02:00] The impact of the Tax Cuts and Jobs Act of 2017 on charitable contributions and tax deductions.
• [00:03:00] Introduction to Qualified Charitable Distributions (QCDs) and their benefits.
• [00:05:00] Eligibility for QCDs and the age requirements for taking RMDs.
• [00:07:38] How QCDs can satisfy RMDs and reduce taxable income.
• [00:09:00] Planning strategies for using QCDs to reduce future RMDs.
• [00:11:16] Important considerations and limitations when using QCDs.

3 Things To Remember

1. Qualified Charitable Distributions (QCDs) allow you to give to charity while avoiding the taxes typically associated with IRA withdrawals.
2. QCDs can be used to fulfill required minimum distributions (RMDs) without increasing your taxable income.
3. Always ensure QCDs are sent directly to the qualified charity to satisfy IRS requirements and keep detailed records for tax purposes.

Memorable moments:

(00:05:01) “The QCD is a bit of a free lunch from Uncle Sam because Uncle Sam is in favor of you giving money to charities.”

(00:11:28) “You cannot say you’re giving it to a charity and then just let it sit in some third-party holding tank and never actually give it to charity.”

(00:15:24) “Don’t let the tax tail wag the financial planning dog.”

Useful Links

Connect with Jason Gabrieli: LinkedIn

Connect with Andrew Barnhardt: LinkedIn

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HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.