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Consider gifts that pay you back this holiday season

| December 01, 2016
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To give is better than to receive, unless you’re giving more than your fair share to Uncle Sam. As you prepare your holiday gift list, consider some smart ways to give family and friends gifts with lasting value that also offer tax benefits for you. Then sit back and reap the rewards of your legacy in action.

Consider the following for:

  • Adult children: the IRS allows you to gift up to $14,000 per individual free of gift or estate tax
  • Grandchildren: make a tax-free contribution to a grandchild’s 529 Education Savings Plan
  • The friend who has everything: consider a tax-free contribution in their name to a cause they’re passionate about
  • Charitable organizations you support: make a tax-free year-end cash contribution; donate securities such as shares of stock; or real property such as a car or boat   

And don’t forget to give a tax-advantaged gift that lasts to yourself:

  • If you you’re eligible to participate in a 401(k) or similar qualified plan, try to contribute the maximum allowable or at least enough to receive any employer matching contributions
  • Take advantage of catch-up contributions if you’re 50 or over, for IRAs and employer-sponsored plans
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