Optimizing After Tax Wealth During a Volatile Market: Gifting

What is type of gifting should someone consider during a volatile market?

During a volatile market, an individual should consider gifting to –

• Family members or other people
• (This is not a conversation about charitable gifting.)

Why is a volatile market a good time to gift?

During a volatile market, assets may decrease in value, which allows the donor to gift more due to the lower value of assets.

What is the annual gift tax exclusion for 2025?

• Individual = $19,000
• Married couple = $38,000

How does someone decide what to gift/how much to gift/when to gift?

This is a question that should be answered through the coordination of an accountant and a financial advisor.

• The financial advisor will advise what should be gifted and when.
• The accountant will advise on how much should be gifted and when.

What are some other considerations for gifting?

• What is the purpose of the gift?
• Does the gift align with the overall estate plan strategy?
• Does the gift align with the overall tax strategy?

Securities offered through Avantax Investment ServicesSM, Member FINRA,SIPC. Investment advisory services offered through Avantax Advisory ServicesSM. Insurance services offered through an Avantax affiliated insurance agency.

Rushton and Avantax are not affiliated.

Tax services are provided by Rushton are separate and apart from Avantax.

The strategies mentioned may not be appropriate for all investors. Please consult your financial and/or tax advisors to determine a strategy that works best for you.

The views and opinions presented in this article are those of Rushton and Rushton Wealth Management and not of Avantax Wealth Management® or its subsidiaries.

All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Past performance is not a guarantee of future results. Neither diversification nor asset allocation can assure or guarantee better performance/profit and cannot eliminate the risk of investment losses in declining markets.

While tax loss harvesting can be a valuable strategy, its effectiveness depends on your individual financial situation and tax circumstances.

Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty.

Converting from a traditional IRA to a Roth IRA is a taxable event.

A Roth IRA offers tax free withdrawals on taxable contributions.

To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.

Tax Free – Income may be subject to local, state and/or the alternative minimum tax.

Real Estate disclosure: Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry.