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What are the best charitable giving strategies in retirement?

Quick answer

The most tax-efficient charitable giving strategy for retirees over 70½ is the Qualified Charitable Distribution (QCD), which allows you to donate up to $105,000 per year directly from your IRA to charity. This satisfies your RMD without increasing your taxable income, potentially keeping you below IRMAA thresholds.

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Illinois exempts Social Security, IRA distributions, and pensions from state income tax. Federal Roth conversions, QCDs, and bracket management compound those savings over a 25-year retirement.

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