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Supercharge Roth Conversions Through DAFs
Manage episode 408332239 series 3564273
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Summary
In this episode, Craig Wear discusses how to supercharge your Roth conversion strategy by using donations. He introduces the concept of Qualified Charitable Donations (QCDs) and explains how they can be used to offset taxable minimum distributions. Craig then dives into the benefits and workings of Donor Advised Funds (DAFs), which act as charitable giving accounts. He highlights the tax advantages of DAFs, including immediate tax deductions and the elimination of capital gains tax. Craig concludes with an example demonstrating the combination of Roth conversion and DAFs, and offers recommendations for a coordinated approach.
Takeaways
- Qualified Charitable Donations (QCDs) can be used to offset taxable minimum distributions from IRAs.
- Donor Advised Funds (DAFs) are flexible charitable giving accounts that offer immediate tax deductions and tax-free growth.
- Combining Roth conversions with DAFs can result in significant tax savings.
- Coordinating with a Roth specialist, investment advisor, and CPA is recommended for an effective strategy.
Chapters
00:00
Introduction and Setting the Stage
01:25
Using Qualified Charitable Donations (QCDs)
04:37
Donor Advised Funds (DAFs)
09:08
Tax Benefits of Donor Advised Funds
12:28
Example: Combining Roth Conversion and Donor Advised Funds
15:15
Considerations and Recommendations
19 episodes
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