So it can pay a larger annuity on proceeds than you would get if you cashed them in. The charity gets a gift, and you get a deduction. Major charities can arrange this for you . Confer with an expert for details. Beware of surprise tax bills from funds.
Funds generate internal taxable gains and losses as a result of trades their managers make.
Theses are distributed to shareholders at year-end. Invest in funds with tax profiles that meet your needs. The lowest tax liabilities usually are produced by index funds because they rarely trade internally. There also are funds now that are actively managed but also minimize their internal tax bite by generating mostly long-term gains. This information is not intended for use without professional advice.