DIRS.INFO The most relevant business & tech news

☆ IRS: There's a key deadline approaching for required minimum distributions
▼ + stars: | 2024-12-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Pretax RMDs boost your adjusted gross income, which can cause higher Medicare Part B and Part D premiums, among other tax consequences, he said. Your RMD is based on your pre-tax retirement balance as of Dec. 31 from the previous year. For 2024, the calculation divides your 2023 pretax balance by an IRS life expectancy factor. The penalty falls to 10% if the RMD is "timely corrected within two years," according to the IRS. There's been a higher standard deduction since 2018, and only about 10% of taxpayers itemized tax breaks on 2021 returns, according to the most recent IRS filing data.

Persons: Derek Williams, Pretax, CFP Michael Lofley, Lofley, There's Organizations: Veratis Advisors, CNBC, CFP, HBKS Locations: Cary , North Carolina, Stuart , Florida

☆ Ramp up tax savings for the holiday season with these strategies
▼ + stars: | 2024-12-03 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

On the holiday calendar, Giving Tuesday comes right after Cyber Monday, marking a day for individuals to consider donating to their favorite charities. Instead, a direct gift of appreciated assets, be they stocks, mutual funds or even cryptocurrency, is the savviest way to share the wealth. 1 asset contributed to the program," said Brandon O'Neill, charitable planning consultant at Fidelity Charitable, a donor-advised fund sponsor. "If you gift an appreciated asset, not only do you get a tax deduction, you also avoid a capital gains tax liability." By transferring appreciated assets to a donor-advised fund, investors can simplify their giving and make grants to multiple organizations.

Persons: Cash, Brandon O'Neill, –, Miklos Ringbauer, Christine Benz, Benz, aren't Organizations: Fidelity, Fidelity Charitable, Defense, Vistra Corp, Morningstar Locations: Los Angeles, QCDs

☆ 3 financially savvy ways to maximize your year-end giving
▼ + stars: | 2024-12-02 | by ( Sponsored Doctors Without Borders | ) www.businessinsider.com time to read: +3 min

With the end of the year fast approaching, consider a few alternative ways to help fuel Doctors Without Borders' work while maximizing your impact. Many alternative gift types offer tax advantages or other financial benefits, and they can serve as long-term investments in Doctors Without Borders' work. Take a moment to explore these financially savvy ways to make a gift — including using a donor-advised fund (DAF), donating stocks or mutual funds, and more. Below are a few strategic ways you can make a gift to Doctors Without Borders before December 31st:1. Appreciated securitiesWith strong stock market performance this year, you may have a limited-time opportunity to maximize your charitable impact with a gift of appreciated securities.

Organizations: DAF, DAFs, Insider Studios Locations: Gaza, Sudan, Haiti

☆ This charitable giving strategy 'almost always' provides the biggest tax break, advisor says
▼ + stars: | 2024-11-27 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

The strategy "almost always has the highest tax advantage," compared to other giving options, said certified financial planner Sandi Weaver, owner of Weaver Financial in Mission, Kansas. QCD tax break is 'better than a deduction'When filing taxes, you must claim the standard deduction or your total itemized deductions, including charitable gifts, whichever is greater. That means most filers don't claim the charitable deduction. Higher AGI can trigger income-related monthly adjustment amounts, or IRMAA, for Medicare Part B and Part D premiums, Weaver explained. There's a two-year lookback, meaning 2024 premiums are based on MAGI from your 2022 tax return.

Persons: Sandi Weaver, Juan Ros, Weaver, There's Organizations: Weaver, Secure, Financial Management, Medicare Locations: Mission , Kansas, Thousand Oaks , California

☆ Here's how to maximize your tax breaks for charitable giving
▼ + stars: | 2024-11-26 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Here's what to know about charitable tax breaks before swiping your credit card or transferring funds, according to financial advisors. How the charitable deduction worksWhen filing taxes, you claim the standard deduction or your total itemized deductions, whichever is bigger. The latter includes a tax break for charitable gifts, medical expenses and state and local taxes, or SALT, among others. For 2024, the standard deduction is $14,600 for single taxpayers and $29,200 for married couples filing together. Plus, you can satisfy yearly required minimum distributions, or RMDs, with a QCD, according to the IRS.

Persons: Indiana University Lilly, Paula Nangle, Donald Trump, Nangle, filers, Sandi Weaver, Weaver, Juan Ros Organizations: Indiana University, Indiana University Lilly Family School, Marshall Financial, President, Weaver Financial, Medicare, Financial Management Locations: Doylestown , Pennsylvania, Mission , Kansas, Thousand Oaks , California

☆ Trump’s tax proposals are a step closer to reality. Here’s what it means for your portfolio
▼ + stars: | 2024-11-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

The Tax Cuts and Jobs Act, which went into effect in 2018, overhauled the federal tax code. The legislation roughly doubled the standard deduction, tweaked the individual income tax brackets and trimmed rates. It also applied a $10,000 cap on the state and local tax deduction, and it nearly doubled the estate tax exemption. Prepping for 2025 Investors can set up their portfolios for success heading into 2025, especially now that they still have some certainty on the tax climate for next year. Eligible IRA owners can exclude up to $105,000 in QCDs from their taxable income in 2024.

Persons: Donald Trump, Stephen Bigge, Rafia Hasan, you've, Hasan, Rachel Elson, it's Organizations: Republican, Keebler, Associates, Senate, Perigon Wealth Management, Internal Revenue, Moderna, Intel, that's Locations: Washington, Green Bay , Wisconsin, San Francisco, QCDs

☆ For retirees, here's what to do with required withdrawals when you don't need the money
▼ + stars: | 2024-10-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Skynesher | E+ | Getty ImagesFor some retirees, the deadline to take required withdrawals from retirement accounts is approaching — and those who don't need the money have options, experts say. Since 2023, most retirees must take required minimum distributions, or RMDs, from pre-tax retirement accounts starting at age 73. Brokerage assets could be subject to capital gains taxes, whereas pre-tax retirement funds incur regular income taxes. Unlike mutual funds, most ETFs don't distribute capital gains payouts, which can save brokerage account investors on annual taxes. There's no charitable deduction, but QCDs don't count toward adjusted gross income, meaning retirees don't need to itemize tax breaks to claim it.

Persons: Judy Brown, you'll, Berkemeyer, You'll, Karen Van Voorhis, Daniel J, Galli, QCDs, It's Organizations: SC, H, D.C, Abrin, Goodman Financial, Galli & Associates, Galli & Locations: Washington, Baltimore, Houston, Norwell , Massachusetts

☆ 4 ways to maximize your tax break for charitable donations on Giving Tuesday, according to experts
▼ + stars: | 2023-11-28 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Getty ImagesWhen filing your taxes, you claim the larger of the standard deduction or your total itemized deductions. In 2018, the Tax Cuts and Jobs Act nearly doubled the standard deduction, slashing the number of filers who itemized. For 2023, the standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly. Give profitable assetsWhether you're transferring money to a donor-advised fund or giving directly to a charity, experts recommend sending profitable assets, rather than cash. Bunching donationsAnother way to exceed the higher standard deduction is by bunching donations, which is a popular strategy for donor-advised funds, experts say.

Persons: Juan Ros, Michael Maye, Maye, bunching, Mitchell Kraus Organizations: Financial Management, Financial, MJM Financial, Capital Intelligence Associates Locations: Thousand Oaks , California, Gillette , New Jersey, Santa Monica , California

☆ This tax-smart charitable donation strategy is like 'hitting two birds with one stone,' advisor says
▼ + stars: | 2023-11-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

The strategy, known as qualified charitable distributions, or QCDs, allows retirees to transfer money from an individual retirement account to an eligible nonprofit organization. "It's like hitting two birds with one stone," said certified financial planner Sean Lovison, founder of Philadelphia-area Purpose Built Financial Services. If you're age 70½ or older, you can use a QCD to donate up to $100,000 for 2023. How QCDs provide a tax breakSince 2018, there's been a higher standard deduction, which makes it tougher to claim a tax break for charitable gifts. If you're age 73 or older, QCDs can also cover your required minimum distributions, which otherwise would have boosted income, experts say.

Persons: there's, Sean Lovison, Marguerita Cheng, Kevin Brady, aren't, Ольга Носова Organizations: Blue, Global Wealth, CNBC's, Social Security, Wealthspire Advisors Locations: Philadelphia, Gaithersburg , Maryland, New York

☆ 'You can control your tax reporting destiny.' 4 key year-end tax moves
▼ + stars: | 2022-12-05 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

While your tax return isn't due until April, several key deadlines are approaching by year-end, experts say. "You can control your tax reporting destiny," said certified financial planner Jim Guarino, a CPA and managing director at Baker Newman Noyes in Woburn, Massachusetts. Since few Americans itemize deductions, it's harder to claim a tax break for charitable gifts. Time Roth IRA conversions with transfers to a donor-advised fundAnother charitable giving strategy, donor-advised funds, may pair well with a Roth IRA conversion, Guarino said. Donor-advised funds act like a charitable checkbook, allowing investors to "bunch" multiple years of gifts into a single transfer, providing an upfront tax deduction.

☆ Why charitable individual retirement account transfers should be the 'first source of giving' for certain retirees
▼ + stars: | 2022-11-21 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you're retired and giving to charity this holiday season, experts say there's a way to trim your 2022 tax bill while supporting your favorite cause. Despite economic uncertainty, the majority of American adults plan to donate similar amounts this year as they did last year, a recent Edward Jones study found. While tax breaks aren't typically the prime reason for giving, retirees may consider using qualified charitable distributions, or QCDs, which are direct gifts from an individual retirement account to an eligible charity. If you're age 70½ or older, you may donate up to $100,000 per year, and it may count as a required minimum distribution if you transfer the money at age 72. While the maneuver doesn't provide a charitable deduction, you may see other significant tax benefits, financial experts say.

☆ Here's how advisors are helping clients slash their 2022 tax bill
▼ + stars: | 2022-10-03 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

However, lower account balances may provide two opportunities: the chance to buy more shares for the same dollar amount and possible tax savings, depending on how much you transfer. And the tax savings may be compounded for investors during lower earning years, experts say. We regularly discuss Roth conversions for retired clients who haven't started taking Social Security yet because their incomes are temporarily low. "By doing a Roth conversion this year, she'll be able to turn a hard situation into massive tax savings," he said. But depending on your taxable income, you may also benefit from a lesser-known move known as "tax gain harvesting."

Search resuls for: "QCDs"

12 mentions found