5 Tips for Year-End Tax Savings
5 Ways to Help Your Community & Yourself
Retirement is wonderful. It's doing nothing without worrying about getting caught at it.”
– Gene Perett
While Gene Perret, comedy writer for Carol Burnett, may have captured the joy of “doing nothing” in retirement, he didn’t mention the financial decisions that can make those years truly worry-free. One of the biggest surprises many retirees face is the tax burden created by Required Minimum Distributions (RMDs). Fortunately, there are strategies that can reduce taxes, preserve retirement income, and allow you to make a lasting difference in your community.
Traditional IRAs and 401(k)s are tax-deferred accounts. Contributions are not taxed when the money goes in, but all withdrawals are taxed as ordinary income. Under the SECURE 2.0 Act, individuals must begin taking RMDs at age 73. These mandatory withdrawals can unexpectedly increase taxable income and even push retirees into higher tax brackets when unprepared.
One option to ease that burden is through a Qualified Charitable Distribution, or QCD. A QCD is a direct transfer from an IRA to a qualified nonprofit, like United Way of Southeast Missouri. The amount given through a QCD counts toward the annual RMD but does not count as taxable income. Lower taxable income can reduce Medicare premiums and minimize the taxation of Social Security benefits. QCDs provide a smart way to support meaningful causes without altering the lifestyle you envisioned for retirement, even if you take the standard deduction. They may also help reduce the size of your estate, lowering potential estate taxes for your loved ones.
Estate planning provides another opportunity to lessen tax obligations while leaving a legacy. Unlike many assets, IRAs inherited by children or other heirs are considered taxable income and must be distributed within 10 years. Leaving taxable assets such as IRAs to charities like United Way avoids that tax altogether, while other appreciated assets can be passed to loved ones in more tax-efficient ways. A planned gift not only helps your family but also strengthens our community, ensuring future generations have the opportunity not just to get by, but to truly thrive.
Including United Way of Southeast Missouri in your will or estate plan is easier than many people realize. Here are five popular ways to make a lasting gift:
- 1. Name United Way of Southeast Missouri as a beneficiary in your will or amend your existing will.
You can designate a specific amount or a percentage of your estate. Speak with your attorney or create a free legal will at www.FreeWill.com/UnitedWay.
- 2. Make an outright gift of cash, appreciated stock, or real estate.
This method may provide you with an immediate tax deduction. For example, Mary and Bob are highly paid professionals who received a large bonus this year. Unfortunately, a significant portion of this year’s bonus will be eaten away by taxes. Mary & Bob also have a stock portfolio of highly appreciated stock. They decide to contribute stock purchased years ago for $2,000 that is now worth $10,000. By transferring the stock to United Way of Southeast Missouri, they avoid paying capital gains tax, support their community, and receive a significant income tax deduction.
- 3. Establish a Charitable Gift Annuity and receive payments for life.
Your one-time gift to United Way is invested in a reserve account,. Then United Way pays you a fixed monthly or quarterly payouts for the rest of your life. The remainder then supports United Way of Southeast Missouri after your passing.
- 4. Name United Way of Southeast Missouri as the beneficiary of a life insurance policy.
This approach allows modest premium payments to result in a much larger legacy gift, while also providing you with a tax deduction. For example, a 40-year-old who takes out a $250,000 policy may pay only $50 a month, yet leave behind a transformative gift for the community.
- 5. Designate United Way of Southeast Missouri as the beneficiary of a retirement plan.
This allows you to avoid estate and income taxes on retirement funds, continue using your account during your lifetime, and retain flexibility if your circumstances change. It also ensures that your retirement savings will continue to help families right here in Southeast Missouri.
As with any financial decision, it is important to consult a financial advisor, CPA, or estate attorney. United Way of Southeast Missouri is here to provide resources and guidance as you explore your options.
Charitable giving through IRAs provides a double benefit: it reduces your tax burden while creating a powerful impact in our community. By planning ahead, you can be both a smart steward of your resources and a generous supporter of families in need. Together, we can build a Southeast Missouri where every child, every family, and every neighbor has the opportunity to thrive.

















