Entertaining comments. I remember long ago as a kid the very first ATMs were introduced in Wisconsin. They were called "TYME machines" - Take Your Money Everywhere. Then for years when Wisconsinites were out of state and asked for the nearest "time" machine, they always got funny looks.
Contributing appreciated securities to the DAF provided a nice tax benefit. But my favorite feature of the DAF is the ability to donate anonymously. Without the DAF, the incessant marketing by email and postal mail from the charities was really discouraging to ever donate again to anybody. But since the big brokerage DAF allows anonymous donations, it’s rewarding to donate again to good causes. (If only we could find a way to make anonymous Qualified Charitable Distributions - technically you need the receipt in case the IRS audits you.)
Maybe only for those that actually pay income tax. I think the lower 50% income wise population have average effective tax rate even lower. There is an ever increasing number of people that really have a negative effective tax rate. They are receiving so many transfers and refundable tax credits that they don't even pay income taxes.
As much as I can get all excited for these deals as the math says its almost a no brainer, my sane mind stops to reconsider. Do I really want all my personal data at yet another organization that may get hacked and/or an organization that is going bombard me with more marketing from their "affiliates"?
The simple solution of the Y is actually more complex. My understanding is the brokers are (and will be uncomfortable) using the Y. Unfortunately, a broker doesn't know how many other IRAs you may have that distributed QCDs. Therefore, you could make multiple QCDs from different custodians that all get a Y code, yet the sum could exceed the annual QCD limit. In that case, somewhere the Y on your 1099R is technically incorrect, yet the broker would have no way to know.
Comments
Entertaining comments. I remember long ago as a kid the very first ATMs were introduced in Wisconsin. They were called "TYME machines" - Take Your Money Everywhere. Then for years when Wisconsinites were out of state and asked for the nearest "time" machine, they always got funny looks.
Post: Loose Change
Link to comment from March 2, 2026
Contributing appreciated securities to the DAF provided a nice tax benefit. But my favorite feature of the DAF is the ability to donate anonymously. Without the DAF, the incessant marketing by email and postal mail from the charities was really discouraging to ever donate again to anybody. But since the big brokerage DAF allows anonymous donations, it’s rewarding to donate again to good causes. (If only we could find a way to make anonymous Qualified Charitable Distributions - technically you need the receipt in case the IRS audits you.)
Post: Why I use a Donor-Advised Fund
Link to comment from February 25, 2026
Maybe only for those that actually pay income tax. I think the lower 50% income wise population have average effective tax rate even lower. There is an ever increasing number of people that really have a negative effective tax rate. They are receiving so many transfers and refundable tax credits that they don't even pay income taxes.
Post: Your effective tax rate
Link to comment from February 4, 2026
As much as I can get all excited for these deals as the math says its almost a no brainer, my sane mind stops to reconsider. Do I really want all my personal data at yet another organization that may get hacked and/or an organization that is going bombard me with more marketing from their "affiliates"?
Post: Marcus Savings Bonus Offer
Link to comment from February 1, 2026
The simple solution of the Y is actually more complex. My understanding is the brokers are (and will be uncomfortable) using the Y. Unfortunately, a broker doesn't know how many other IRAs you may have that distributed QCDs. Therefore, you could make multiple QCDs from different custodians that all get a Y code, yet the sum could exceed the annual QCD limit. In that case, somewhere the Y on your 1099R is technically incorrect, yet the broker would have no way to know.
Post: Checks and Balances
Link to comment from January 28, 2026