Gifting Strategies this Holiday Season

Few things in life are more fulfilling than witnessing your legacy in action. These gifting strategies not only offer tax benefits but also show the fruits of a thoughtful legacy plan. Consider the following gifting strategies this holiday season.

• For adult children: The IRS allows you to gift up to $16,000 per individual free of gift or estate tax.

• For grandchildren: Make a contribution to a grandchild’s 529 Education Savings Plan. Earnings are not subject to federal tax and generally not subject to state tax when used for qualified education expenses of the designated beneficiary. 1

• For the friend who has everything: Consider a taxdeductible contribution in their name to a charitable or other not-for-profit organization that they’re passionate about.

• For the charitable organizations you support: Make a taxdeductible year-end cash contribution or donate securities (such as shares of stock) or real property such as a car or boat.

• Qualified charitable distributions: These can permit a direct transfer of up to $100,000 from an IRA to a qualified charity. Note: You must be age 70 1/2 plus and subject to required minimum distributions to be eligible.

• And don’t forget to give a tax-advantaged gift to yourself:Contribute the maximum amount allowable to any 401(k), 403(b) or similar employer-sponsored retirement plans that you’re eligible to participate in by the December 31 deadline ($20,500 if you’re under age 50).

• Take advantage of annual catch-up contributions ($6,500) if you’re age 50 or over, for a maximum contribution of $27,000 in your employer-sponsored plan.Take advantage of annual catch-up contributions ($6,500) if you’re age 50 or over, for a maximum contribution of $27,000 in your employer-sponsored plan.

If you have questions about legacy planning, charitable gifting or other wealth planning strategies, please reach out to schedule a time to talk.

Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer’s official statement and should be read carefully before investing. Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investing in any state’s 529 Plan. Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty. This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought. These figures are representative of 2022 contribution limits.

This material is for information purposes only and not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss during periods of declining values. Neither the named representative, nor the named Broker-Dealer or Registered Investment Advisor, gives tax or legal advice. Past performance does not guarantee future results. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial professional for further information. These are the views of FMG Suite LLC, and not necessarily those of the named representative, Broker-Dealer, or Registered Investment Advisor, and should not be construed as investment advice. Heritage Wealth Strategies is a marketing name of Cetera Investment Services. Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency. 1000 SW Broadway, Suite 2170, Portland, OR 97205, (888) 360-0052.