How to Give Back and Save on Taxes in Retirement

As you enter—or are already enjoying—retirement, you may be thinking more about legacy, impact, and how your giving can reflect your values. What if we told you that your generosity could also help you save on taxes? At Retirement Solutions NJ, we believe smart charitable giving can be a powerful part of your retirement‑planning strategy.

In this post we’ll walk through some tax‑savvy charitable giving strategies retirees and near‑retirees should consider, highlight key rules under federal law (and New Jersey implications), and provide actionable steps so you can give back — while preserving your financial security.

Why charitable giving

matters in retirement

Giving back isn’t just selfless—it can align with your retirement goals in several meaningful ways: - It enables you to support causes you care about now. - It can reduce your taxable income depending on how you structure your gift. - It helps you leave a legacy for your community. - It may also alleviate future tax exposure for heirs and your estate.

Four smart strategies to give‑and‑save

Here are four key strategies you should know about — each with tax benefits and considerations.

Qualified Charitable Distributions (QCDs) from IRAs

If you’re age 70½ or older and have a traditional IRA, you can make a qualified charitable distribution (QCD). With a QCD, the IRA trustee sends the contribution directly to a qualified charity, which can count toward your required minimum distribution (RMD) and is excluded from taxable income.

Donate appreciated assets (stocks, mutual funds, etc.)

Donating appreciated assets directly to charity can offer a double tax benefit: you can claim a deduction for the fair market value and avoid capital gains tax on the appreciation.

“Bunching” or donor‑advised funds (DAFs)

Because of the higher standard deduction, retirees can bunch several years’ donations into one tax year to maximize deductions, then use a donor‑advised fund to distribute gifts over time.

Naming charities as beneficiaries / legacy giving

You can designate a charity as a beneficiary of your retirement assets or create a charitable trust. This helps reduce estate taxes and ensures your assets support causes you care about.

Local focus: Why this matters for Monmouth & Ocean Counties retirees

Giving locally supports the community you live in and may have indirect tax benefits. At Retirement Solutions NJ, we help you make the most of your charitable strategies while considering federal and New Jersey‑specific implications.

How to get started — your end‑of‑year checklist

1. Inventory your giving goals. 2. Review your tax and retirement plan. 3. Choose a giving strategy. 4. Coordinate with your advisor/tax professional. 5. Execute and monitor your plan.

Common pitfalls — and how to avoid them

Avoid assuming all nonprofits qualify for QCDs, withdrawing IRA funds yourself, or failing to document gifts properly. Consult with a qualified advisor to ensure compliance and maximize your benefits.

Start Your Tax-Smart Giving Strategy Today

At Retirement Solutions NJ, our mission is to help you craft a retirement life design — one where you feel financially secure and confident your legacy aligns with your values. If you’d like help integrating charitable giving into your retirement plan, schedule a consultation today.

Ready to set up a giving plan that works for your retirement? Visit RetirementSolutionsNJ.com or call us to arrange a complimentary “Giving & Retirement Strategy” session. Give back. Build legacy. Save tax. Enjoy your retirement with purpose.