The SECURE Act has changed the game, especially for parents who were planning on leaving substantial nest-eggs to their kids, with the elimination of Stretch IRAs. Uncle Sam may be the biggest beneficiary.
Giving to charity doesn’t have to mean your kids get less. You might be able to make everyone happy… except Uncle Sam.
Jim Lorenzen, CFP®, AIF® Giving to charity? While most anything can be given to charity, these are the more common forms of donated property: Cash:Cash
Congratulations—you’ve built up a healthy retirement nest egg, maybe even a couple million bucks in a traditional IRA. Cue the applause! No worry about tax traps now! But as you reach retirement and start thinking about how to spend it (or pass it on), Uncle Sam is waiting with a few surprise moves that could mess with your plans. These are the tax traps.
You’ve just inherited an IRA from someone not your spouse… usually a parent. Guess what! Your rules are different.
