Philanthropic Wealth Advisor

Planning for your financial future means deciding what to do with RMD funds. The required minimum distributions can be used for several things. One popular option is to use RMD funds for qualified charitable distributions. Your philanthropic wealth advisor can help you plan for your goals.

Qualified Charitable Distributions

QCD, or qualified charitable distributions, offer big tax savings since tax rates on regular income are typically the highest. There are many benefits of using your required minimum distributions for qualified charitable distributions. Additionally, this is an excellent, tax effective way to support a cause.

However, there are some requirements you must meet, and you should also understand the details and limitations of this strategy. First, qualified charitable distributions do not provide a charitable deduction for taxpayers, regardless of whether you itemize deductions.

Instead, a check is sent directly from an IRA to the chosen charity organization. This allows the donor to exclude the amount from taxable income. Since RMDs can increase taxes, this is a popular option for many people. A philanthropic wealth advisor can help you understand the rules and support your preferred charity while also minimizing your tax burden.

A philanthropic wealth advisor is an individual or team of people hired to help you navigate the who, what, how and why of charitable giving. This person/team guides you through social impact investing and how it will impact your philanthropic goals. The goal is to improve charitable outcomes while also helping you achieve and maintain your financial goals.

Do I Need a Philanthropic Wealth Advisor?

Philanthropic wealth advisors can do many things and support your charitable giving plans. Your philanthropic wealth advisor will:

Design a strategy for giving.
Evaluate the impact of donor grants.
Identify other aligned funders or learning partners.
Support and facilitate discussions among families.
Coordinate with investment advisors and financial planning experts.
Identify charitable opportunities and carry out those plans.

Rules for Qualified Charitable Distributions

Like with other tax strategies, the IRS rules will play a large role in your qualified charitable distributions planning. Some important rules to consider are:

Account owner must be age 70 ½ or older.
Annual QCD limit is $100,000 per account owner.
Donations must go directly from your IRA to the qualified public charity.
QCDs only apply to taxable distributions.
Most types of IRAs qualify.
Making tax-deductible URA contributions can reduce your deduction for qualified charitable distributions when both are made in the same tax year.

Philanthropic Wealth Advisor in Virginia

QCDs may offer large tax savings but before deciding on a strategy for your charitable giving, speak to a philanthropic wealth advisor about your options. There are many ways to give, and a philanthropic wealth advisor can help you choose the best one. Contact Argent Bridge Advisors today to learn more.