Before you ring in the new year, make sure you are on track to meet your financial and charitable goals for 2025 using these tax-savvy strategies:
-
Review your beneficiary designations. Make sure your designations are up to date on your retirement accounts, insurance policies, and other assets. Naming a charity like Adena Health Foundation as your primary or secondary beneficiary is an easy way to make a significant future impact at no additional cost to you now.
-
Satisfy your Required Minimum Distribution. If you own a traditional or inherited IRA and have not yet taken your RMD for 2025, you can transfer up to $108,000 directly to the foundation and avoid paying taxes on the distribution. This tax-savvy strategy is available to all IRA owners beginning at age 70 ½.
-
Take inventory of your life insurance policies. Many people find they have insurance policies they no longer need because their children are financially independent, their mortgage is paid off, or they have retired. Consider transferring the ownership of an unneeded policy to the foundation in exchange for a tax deduction.
-
Evaluate the performance of your investments. If your portfolio has grown this year, consider the benefit of donating appreciated stock. You will receive a deduction for the fair market value and eliminate capital gains taxes, which means more of your money will go to your favorite cause.
-
Bunch your gifts. By consolidating multiple years of donations into a single tax year, you can exceed the newly increased standard deduction threshold and claim your full tax deduction now.
-
Consider your business succession plans. If retirement is on the horizon, owners of a privately held company can offset taxes from the sale by donating a portion of the interests to charity. For the best outcome, start the conversation well in advance of any potential sale.
-
Review your estate planning documents. This includes your will, trust, or powers of attorney to ensure they reflect your current wishes. You will achieve the most tax savings by leaving your IRAs to charity and other assets to your family. New rules on inherited IRAs mean your beneficiaries may face a hefty tax burden, but these same assets can go to charity tax-free.
To speak to an expert call
740-779-7528
Email: foundation@adena.org