Roth Conversion with Contribution to Donor Advised Fund

Details

Who: Someone who intends to give significantly over multiple years and has a significant percentage of their assets in IRA or 401(k) account types.

Why: It allows the movement of more dollars from taxable to non-taxable account types for the benefit of heirs, while claiming a tax deduction for the charitable contributions.

How: Contribute into a Donor Advised Fund account in the year of a Roth conversion

Considerations

• Deductions are limited as a percentage of one’s adjusted gross income
• DAF contributions must be made from non-retirement account types