When wealthy families think about charitable planning, the conversation typically centers on appreciated securities, donor-advised funds, private foundations, or charitable trusts. Rarely does it begin with a 401(k).
As George Burnette, JD, CFP®, ATFA, TEP, our Director of Philanthropic Consulting & Wealth explained in a recent piece he wrote for Rethinking65, that may soon change.
A bipartisan proposal currently working its way through Congress, known as the Charity Parity Act, has the potential to make retirement assets a far more useful tool in philanthropic planning. At first glance, the legislation appears technical. In reality, it addresses a long-standing gap in tax law that has limited how individuals (even ultra-high-net-worth ones) can make tax-efficient charitable gifts from workplace retirement plans.