You are generous and you donate to worthy causes. Lately, you have been making long-term plans to continue giving when you retire, but you need to be strategic. In the past, donations were given after income was received from retirement accounts, and this was an acceptable way to source the funds to contribute but after major changes in federal taxation, this is no longer tax efficient, and here is why: Your IRA distribution generates income taxed at ordinary rates as high as 37%, and nowadays it is common to not have sufficient deductions to itemize. Your deduction for state income tax and property tax is limited to $10,000 and if your home is debt free, you do not have any mortgage interest to deduct; so your best opportunity to lower your tax bill is to donate to qualified charitable organizations. The 2024 standard deduction for married couples is $29,200. If your deduction for state and local taxes is $10,000 you need to give at least $19,201 to benefit tax-wise by itemizing your deductions. The workaround is to request a Qualified Charitable Distribution (QCD) from your