Smart Gifting Using Retirement Assets

Before you think about donating to charity, consider the source. Should you gift money from your stock portfolio or your traditional IRA or 401(k)? Which account you choose, and how you decide to give, could make a big difference.

A gift bag with money peeking out.
(Image credit: Getty Images)

The potential for higher tax rates, coupled with markets near or at all-time highs, are keeping investors and their advisers on alert. While investors save to cover future spending, their advisers are helping to evaluate wealth-transfer opportunities. A tailored strategy can integrate gifts to both individuals and charity as part of a lifetime or legacy plan.

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This material is provided for illustrative/educational purposes only. This material is not intended to constitute legal, tax, investment or financial advice. Effort has been made to ensure that the material presented herein is accurate at the time of publication. However, this material is not intended to be a full and exhaustive explanation of the law in any area or of all of the tax, investment or financial options available. The information discussed herein may not be applicable to or appropriate for every investor and should be used only after consultation with professionals who have reviewed your specific situation.


This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Kathleen A. Stewart, AIF®
Senior Wealth Strategist, BNY Mellon Wealth Management

As a Senior Wealth Strategist with BNY Mellon Wealth Management, Kathleen Stewart works closely with wealthy families and their advisers to provide comprehensive wealth planning services.  Kathleen focuses on complex financial and estate planning issues impacting wealthy families, key corporate executives and business owners.