Year-End Gifts
Charitable Gifts
Consider gifting low-basis, highly appreciated securities to receive a deduction for the donation's Fair Market Value (FMV) while avoiding the capital gains tax. If appropriate, the stock can be repurchased to maintain exposure while resetting a new, higher-cost basis.Recommended Deadline: December 11
Donor Advised Funds (DAFs)
Consider opening a Donor-Advised Fund (DAF) to facilitate gifts of highly appreciated stock. Individuals can receive a tax deduction equal to the Fair Market Value (FMV) for the year of contribution to a DAF while retaining the flexibility to make grants to designated charities over multiple years or even decades.Starting in 2026, new tax rules affect how charitable donations are deducted, and the impact varies by household. We recommend working with your CPA or Woodmont advisor to review what this means for your specific giving strategy. For additional information, please see our whitepaper from July 2025: One Big Beautiful Bill Act – Key Changes.
Recommended Deadline: November 27 for charities needing approval
Recommended Deadline: December 11 for charities already approved by Charles Schwab & Co.
Qualified Charitable Distributions (QCDs)
If you're 70½ or older, a Qualified Charitable Distribution (QCD) offers a tax-efficient way to give directly from your IRA to charity. In 2026, you can direct up to $111,000 (indexed annually for inflation) toward a QCD, which can also count toward satisfying your Required Minimum Distribution (RMD). Because QCDs exclude the distribution from Adjusted Gross Income (AGI) entirely, they may help you qualify for additional tax credits or deductions and could reduce future Medicare premiums, which are based on AGI from two years prior. Reach out to your Woodmont team to explore whether a QCD fits your giving strategy.Recommended Deadline: November 27 for checks written from your IRA checkbook
Recommended Deadline: December 11 for checks requested directly from Charles Schwab & Co.
Annual Gifting Exclusion
The annual gifting exclusion for 2026 allows you to gift up to $19,000 per year (unchanged from 2025 limits) to an individual without counting toward your lifetime estate tax exemption. Married couples can jointly give up to $38,000 to one individual ($76,000 to another married couple). This is an excellent way to transfer cash or stock.Gifting to a 529 college savings plan lets you front-load up to five years’ worth of annual contributions, a powerful strategy if you’re managing a potentially taxable estate. These plans are also evolving into broader family savings tools, with new provisions that allow certain unused balances to be converted to a Roth IRA for the beneficiary and broaden the range of eligible expenses. Starting in 2026, 529 plans now permit larger annual withdrawals for K–12 and postsecondary credentialing expenses, raising the limit from $10,000 to $20,000.
Recommended Deadline: December 18
Caution: Donations related to the right to purchase athletic tickets are not tax-deductible. Please consult your CPA before making a gift to an athletic institution.
Year-End Distributions
Beneficiaries of an inherited account post-2019
If you inherited a tax-deferred Individual Retirement Account (IRA) after 2019, you may save on your tax burden by spreading out the required distributions rather than taking a lump sum within ten years. Please contact Woodmont if you would like to explore your options for a post-2019 inherited IRA account.Recommended Deadline: November 27
Retirement account owners
If you turn 73 in 2026, you are required to take your RMD by April 1st, 2027. However, taking it by December 31, 2026, can help you avoid the need to take two RMDs in 2026. All future RMDs, except for the first year, must be taken by December 31.If you're still working and own less than 5% of your company, you may be able to defer your RMD from an employer-sponsored retirement plan (such as a 401(k)) until the year you retire.
Please contact Woodmont if you want to change your IRA distribution’s tax withholding.
Recommended Deadline: November 27
Lastly, please notify Woodmont if you need additional funds to make a 4th quarter estimated tax payment due on January 15, 2027.
We recognize this is a lot of information. We are available to answer your questions and assist in any way possible.
The Woodmont Team
This document contains general information only and is not intended to be relied upon as a forecast, research, investment advice, or a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy. The information does not take into account any reader’s financial circumstances or risk tolerance. An assessment should be made as to whether the information is appropriate for you with regard to your objectives, financial situation, present and future needs.
The opinions expressed are of the date of publication and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Woodmont to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. There is no guarantee that any forecasts made will come to fruition. Any investments named within this material may not necessarily be held in any accounts managed by Woodmont. Reliance upon information in this material is at the sole discretion of the reader. Past performance is no guarantee of future results