The 'What's Next?' Retirement Podcast
Welcome to another edition of The “What’s Next?” Retirement Podcast with Craig Wear. Life is full of transitions that have a financial impact now and in your future. When finances are affected, there are always questions to ask and choices to make. As an independent Certified Financial Planner for well over thirty years, Craig has helped Americans make decisions that give them their best financial futures. The experiences with so many clients has given him a unique perspective to help with “What’s Next?” for you - as you navigate the unknowns of your own life.
The 'What's Next?' Retirement Podcast
Supercharge Roth Conversions Through DAFs
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