Donor-Advised Fund
Give now, get the deduction now, recommend grants later.
What is Donor-Advised Fund?
A donor makes an irrevocable contribution to a fund held by a sponsoring public charity, takes the tax deduction in the year of the gift, and recommends grants to charities over time. Contributing appreciated securities avoids the capital gain.
Donor-Advised Fund: a worked example
A client with a high-income year contributes $100,000 of appreciated stock, deducts it now, and spreads grants over ten years.
More terms in Retirement Plans, Accounts & Trading
IRA Rollovers vs. Transfers
60-day rollovers are limited to one a year; direct transfers are unlimited.
10% Early Withdrawal Penalty & Exceptions
Distributions before 59 1/2 cost 10% extra, unless an exception applies.
Solo 401(k)
A 401(k) for a self-employed owner with no employees other than a spouse.
Defined Benefit Plan
A pension promising a specific benefit; the employer bears the investment risk.
Defined Contribution Plan
An individual account plan whose payout depends on contributions and returns.
403(b) Plan
A salary-deferral plan for public schools and 501(c)(3) nonprofits.
457 Plan
Deferred compensation for state and local government employees.
SIMPLE IRA
A low-cost plan for employers with 100 or fewer employees.
All Retirement Plans, Accounts & Trading terms · Full glossary