|
|
Post by anitya on Feb 21, 2024 0:07:14 GMT
There are also good reasons to keep some in T-IRA. Those $s can be used for QCDs after 70, and also for sudden large deductible expenses (healthcare etc). Yogi, Please say more how a TIRA helps with sudden large healthcare deductible expenses. Are they qualified, non taxable distributions? Most I know have multiple IRA accounts at multiple brokerages. Is there any problem with the following: make a DAF the beneficiary to one or more of these IRA accounts and making the charity of choice the (or a) successor beneficiary of the DAF? |
|
|
|
Post by yogibearbull on Feb 21, 2024 0:35:45 GMT
anitya , TurboTax has details - medical expenses beyond 7.5% of AGI can be deducted on Schedule A for itemization. So, if one has to draw large amounts from T-IRA, this deduction would be useful. But standard deduction is high now, so many don't itemize. turbotax.intuit.com/tax-tips/health-care/can-i-claim-medical-expenses-on-my-taxes/L1htkVqq9 The DAF question is more tricky. DAF can be the beneficiary of IRAs, 401k/403b. After the current "owner" and all "successor owners" are gone, $s by default go into sponsors' (Schwab, etc) giant charitable pool, but this can be changed. Sponsors don't publicize this, so you will have to call Schwab for specific details/paperwork. Many are OK with the DAF eventually going into sponsor's giant pool. Edit/Add. I found Schwab DAF update form & section 4 addresses options after the owner & successors have passed away. www.schwabcharitable.org/public/file/p-5251073
|
|
|
|
Post by anitya on Feb 21, 2024 3:31:51 GMT
yogibearbull , Thanks Your original message was cryptic and I thought you may be saying that just as a QCD, there is a qualified medical expense distribution, essentially treating IRAs like an HSA. I get that there is no such opportunity but there is an itemized deduction opportunity, which is unrelated to an IRA or RMDs. I am actually thinking about no successors for DAF and just adding charitable organization(s) as beneficiaries. So, when I am gone that would be the end of my DAF(s). I do not want the balance to go to sponsor(s) pool for sure. Thanks
|
|
|
|
Post by flipperxxx on Feb 21, 2024 13:58:09 GMT
thank you very much for this. it helps make a little order out of the chaos inside my wee aging brain. R48 reply in bold: Great. Glad to have helped. currently, the only stocks i own are via VTMFX (tax managed balanced, in taxable) and PRWCX (in IRA). i probably have too much in cash in taxable and too much in various bond funds in the IRA. R48: Price/Geroux has a couple new funds that are 100% stock....consider changing to them in IRA if they fit. it recently occurred to me that, given my preferred pauper's lifestyle, i ought to be investing not with me in mind but my 40-year-old daughter, but perhaps that's a topic to put in a thread of its own. R48: Indeed. Once one "has enough" they should have an allocation for their heirs. In your case how about owning a fund like FSPTX Tech Sector Fund (75% of top ten holdings are in stocks like NVIDIA, Microsoft) or a comparable type cap growth fund...eventually for your daughter to inherit!). Ride aboard Artificial Intelligence for next decade.
again, thanks for weighing in! R48 You're welcome. BTW Great job in your savings, and lower cost living. a few months ago, i started doing auto investments of 10k/month into PRWCX. maybe ill switch that to FSPTX or FSELX (or both; ie, why choose one over the other)? my big worry, of course, is that unexpected illness or similar age-related fiasco suddenly starts requiring more and more of my savings, throwing all of my frugal-living plans out the window. then again: what will happen will happen. onward. and i will look at geroux's new funds, too ... thanks again for your suggestions.
|
|
