With the Tax Cuts and Jobs Act, you’ve read about how charitable planning can provide higher tax savings. But you may be asking yourself if you should set up a private foundation or donor-advised fund. So, which one is the better option? It really depends on a multitude of issues, and we’ll explore the reasons why you may prefer one over the other.
Retirement account holders aren’t the only ones who need to plan how to make prudent investment selections, minimize taxation and strategize when to take withdrawals. Perhaps you are the designated beneficiary of a traditional IRA or recently inherited one. If you don’t effectively manage your inherited accounts, you may be penalized if you are unaware of the complex rules, restrictions and deadlines involved. You need that know-how to make crucial choices upon inheritance and avoid irrational last-minute decisions.
