Starting in 2026, there will be a .5% floor to Charitable Donations …
All other things being equal, your Charitable Contributions in 2026 will get a 1/2 percent haircut before counting towards a Charitable Contribution.
On smaller contributions maybe it does not seem too bad – we buy that, but as the contribution grows in size, it makes a difference….. $500 for every $100k –
No need to make an undesired donation… BUT if you are on the fence, it may make sense to do the contribution before the end of the year… again if you are on the fence….
IRA contributions directly to charities for your RMD are not effected, so all clear there….
We talked about this just after the new rules were implemented, and in the Newsletter…but worth reminding as we get closer to the end of the year!
Have a Great “Donation Tax Change Reminder” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
