The holidays bring a spirit of giving, and for many retirees that extends to helping loved ones or supporting causes that matter most. Thoughtful gifting can strengthen family bonds and make a lasting impact when done strategically. Here are several smart, tax-efficient ways to give this season.
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1. Educational Gifts
If you have children or grandchildren in school, you can pay tuition, room, or board costs directly to the institution. These payments are unlimited and do not count toward your annual gift limit. This allows you to support education while maintaining control over how funds are used.
2. Medical Expense Assistance
You can also make direct payments for family members’ medical expenses. Paying providers or hospitals directly avoids the annual gift limit while helping loved ones manage unexpected costs.
3. Annual Gifting Limits
Each year, you can give up to $18,000 per person (or $36,000 per couple) in 2025 without reporting it to the IRS. In 2026, this limit rises to $19,000 per person. If you wish to give more, you can, but any excess counts toward your lifetime exemption, which is currently in the multimillion dollar range for married couples.
4. Charitable Giving Beyond Cash
Gifts do not have to be monetary. Highly appreciated assets such as stocks, mutual funds, vehicles, or real estate can be donated directly to a 501(c)(3) charity. This allows you to avoid capital gains taxes while claiming a charitable deduction.
If you are heavily invested in one stock or fund, this is a great way to reduce concentration risk while making a meaningful impact.
5. Qualified Charitable Distributions (QCDs)
For those over 70, charitable giving can also come directly from your IRA or 401(k) through a Qualified Charitable Distribution. You can donate up to $100,000 per person per year, satisfying part or all of your Required Minimum Distribution and lowering your taxable income in the process.
A Lasting Legacy
Thoughtful gifting is more than generosity, it is a strategy. To help guide your approach, email retire@reapfinancial.com for a free copy of The Greatest Gift: Smart Gifting Strategies for Successful Families. Learn how to give confidently and leave a legacy that lasts for generations.
Ready to Strengthen Your Gifting and Retirement Strategy?
If you want personalized guidance on how gifting fits into your broader retirement plan, our team at REAP Financial can help you make tax-efficient decisions that support your long-term goals. Whether you are searching for a financial advisor Austin families trust or looking for retirement planning Austin experts who understand the complexities of wealth preservation, we are here to support you every step of the way.
To schedule a consultation or explore your options, visit reapfinancial.com or email retire@reapfinancial.com to get started.
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Chris Heerlein, a Texas native, is an Investment Adviser Representative and CEO at REAP Financial, servicing its private client group, helping private business owners, top-level executives and affluent individuals create, transition, preserve and grow their wealth over generations. REAP serves corporate and private clients, offering objective financial and investment advice, tax planning, business succession planning, access to webinars, and exceptional service that creates generational relationships built on trust. Affluent families and individuals look to Chris and his team of advisers to empower them by providing organization, accountability, objectivity, proactivity, education, and partnership. Chris is a multi-published author with his most recent release, “How to Retire Rich and Look Poor in Retirement: The Millionaire’s Tax Playbook” (2026), “Divorce With Dignity” (2019) and “Money Won’t Buy Happiness But Time To Find It” (2017).
In addition to his work with clients, Chris hosts Wealth Radio each Saturday at 11 a.m. on NewsRadio KLBJ and has been a featured speaker on other podcasts. He is also the host of Retire Ready TV on KXAN each Monday and Wednesday at 6 p.m., as well as REAP Financial’s YouTube channel.
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