Charitable Giving Motivations - Employer matching contributions are a significant motivator, with approximately 65% of large companies and 28% of small to midsize firms offering this benefit [1] - Tax breaks can be a motivator for charitable giving, but should not be the primary driver [1] Tax Law Changes and Strategies - Starting in 2026, a charitable tax break for nonitemizers will be available, worth up to $1,000 for single filers and $2,000 for married couples filing jointly [2] - For the 2025 tax year, a charitable deduction requires itemizing taxes, suggesting timing gifts for after January 1st if not planning to itemize [3] - In 2026, for taxpayers in the 37% tax bracket, the value of donations will be capped at 35% [3] - High earners may benefit from larger deductions by increasing giving in the current year [4] - Donor-advised funds allow bunching multiple years of gifts into a single year for an upfront charitable deduction [4] - Donor-advised funds enable investment and potential growth of the balance while distributing grants to charities over time [4]

Core Insights - Roth conversions involve rolling over retirement funds from pretax accounts to after-tax Roth IRAs, allowing tax-free withdrawals in retirement after paying capital gains taxes during the rollover [1] Group 1: Timing Considerations - Roth conversions may not be beneficial if an individual expects their income to drop in retirement, as paying taxes at a high rate now could undermine the strategy [3] - The optimal timing for Roth conversions is during low-income years, particularly after retirement but before required minimum distributions or Social Security benefits begin [3][4] - The period between retirement and the start of required minimum withdrawals or Social Security is ideal for conversions, as it allows for better control over taxable income and minimizes tax liabilities [7] Group 2: Tax Implications - Tax laws are subject to change, and while Roth IRAs can hedge against future tax increases, conversions are taxed under current laws, which may strain cash flow or affect other financial plans [5] - Performing a Roth conversion while in a peak tax bracket can lead to higher immediate tax payments than necessary, making it advisable to wait until after retirement when income typically decreases [6][7]

President Trump’s big tax-and-spending law includes new restrictions on how much students can borrow and how they repay. Here’s a guide to what is changing. https://t.co/6j0l7GEyjG ...

President Trump’s big tax-and-spending law includes new restrictions on how much students can borrow and how they repay. Here’s a guide to what is changing. https://t.co/IvPBgYB7RE ...