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Smart gifting strategies that pack rewards beyond tax benefits

| December 06, 2017
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Few things in life are more fulfilling than witnessing your legacy in action. Below are some smart ways to give to family and friends this holiday season that not only offer tax benefits, but provide the satisfaction of seeing the good your legacy can accomplish in your lifetime. 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 contribution to a grandchild’s 529 Education Savings Plan; earnings are not subject to federal tax and generally not subject to state tax when used for the qualified education expenses of the designated beneficiary1
  • The friend who has everything: consider a tax-deductible contribution in their name to a charitable or other not-for-profit organization they’re passionate about
  • Charitable organizations you support: make a tax-deductible year-end cash contribution or donate securities (such as shares of stock), or real property such as a car or boat
  • Qualified Charitable Distributions (QCDs) permit a direct transfer of up to $100,000 from an IRA to a qualified charity (you must be age 70 ½+ and subject to RMDs to be eligible

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

  • Contribute the maximum allowable to any 401(k), 403(b) or similar employer-sponsored retirement plans you are eligible to participate in by the December 31st deadline ($18,000 if you’re under age 50)
  • Take advantage of annual catch-up contributions ($6,000) if you’re age 50 or over, for a maximum contribution of $24,000 in your employer-sponsored plan

If you have questions about legacy planning, charitable gifting or other wealth planning strategies, please contact your local Synergy office to schedule time to talk.  



This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.


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