The US Treasury took an amazingly positive action (can you believe it?). They decreed that any investor can assign their 2024 RMD (Required Minimum Distribution from a 401(k) or IRA) to a qualified 501(c)(3) charity, allowing the investor to avoid declaring their RMD as income—potentially preventing them from jumping into higher state and federal tax brackets. In the past, one would have to take the RMD as income and then make a tax-deductible donation (depending on exemptions) to their favorite charities.

What a great way to build your Legacy!

As you know, I run A Brighter Day Charity in Lafayette, CA, as well as Prosperity Financial Group and Prosperity Wealth Management, both based in San Ramon, CA. I would never ask any client to donate to A Brighter Day, but I do encourage all clients to look into their hearts and consider if they are charitably inclined. Donating your Required Minimum Distributions could make a significant difference in the world. There are so many worthy causes—Cancer, Diabetes, children’s charities, Mental Health, animal welfare, Make-A-Wish Foundation, and St. Jude’s, to name a few.

If you’re undecided, you can always donate these funds to a Donor-Advised Fund (tax-deductible), and make the donation itself later on. The key here is that if you are charitably inclined, you can make a difference in 2024 before the year ends. I’m happy to help you create a personalized charitable plan using your Retirement Money.

In addition to assigning or donating your Required Minimum Distribution, here are some other effective ways to lower your taxable income while making impactful charitable contributions:

• Donate highly appreciated stock or Real Estate
• Donate a life insurance policy (ILIT)
• Grantor Retained Income Trust (transfer assets but still receive income)
• Grantor Retained Annuity Trust (transfer assets for a set time and avoid future taxes)
• In-kind donations
• Charitable Remainder Trust
• Create a bequest to charity in your will
• Name a charity as the beneficiary of your non-probate assets

Americans are the most generous donors globally, contributing over $484 billion to charity last year. This is a fantastic time to step up and continue building your legacy.

To grow and create your legacy, please contact me at 925-314-8503 or elliot@prosperityfinancialgroup.com.

The post Secure Your Legacy: Year-End IRA RMD and Charitable Planning appeared first on Prosperity Financial Group | San Ramon, CA.

Elliot Kallen Wealth Manager | Registered Principal

For more than three decades, Elliot has provided customized wealth management solutions for entrepreneurs, business owners, retirees, and millennials.

Elliot and his wife, Tammy, are passionate about giving back to the community through their 501(c)(3) foundation, A Brighter Day. Through his partnership with A Brighter Day Charity, the Kallen family has helped local teens and young adults recognize and access resources to cope with the risks of stress and depression.

He enjoys spending his free time with his family. Some of his hobbies include cooking, wine, golf, travel, and studying history.

He lives in Lafayette, California with his wife, step-daughter, and grandson.