Charitable Giving in the New Year
“Charity brings to life again those who are spiritually dead.”
Saint Thomas Aquinas
Many of our clients donate meaningful amounts each year to charities, including their church. We are sending this message to you so you can properly plan your donations.
With the change in tax laws in recent years, the standard deduction for all tax payers was raised. This change has made it more beneficial for our clients who are over the age of 70.5 or will be in the current year to make what is called Qualified Charitable Distributions (QCD) from their IRAs.
YOU CAN ONLY MAKE A QCD IF YOU ARE THE AGE OF 70.5 OR OLDER IN THE CURRENT YEAR. Though required minimum distributions (RMDs) do not start until age 72.
Congress passed the Protecting Americans from Tax Hikes (PATH) Act, permanently allowing IRA owners who are at least 70½ years old to give up to $100,000 directly from an IRA to a charity without having to include the distribution in taxable income for the tax year.
Donating IRA funds directly to qualified charities allows the IRA holder or beneficiary to avoid taking possession of the funds and the tax bill that comes with them. It also allows the extra income to be excluded from tax formulas for Medicare premiums.
If you’re intrigued by the idea but would like to discuss the rules in more detail, we would be happy to talk with you about it.
Thank you for the trust and confidence you have placed in us and giving us the opportunity to provide education to you on your financial journey.
As always, thank you for the introduction of your friends and family that so many of you have made. We are honored to serve you! As a service to our clients, we are happy to act as a sounding board for your friends and family. If any of them should need a second opinion on their financial situation, introduce them to www.striblingwhalen.com or call us at 678-989-0048.
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Regards,
Warren D. Stribling, IV, CFP®
Principal
warren.stribling@striblingwhalen.com
Brian E. Whalen, CFP®, CIMA®, AIF®
Principal
brian.whalen@striblingwhalen.com
Financial Advisor
jacob.beauchamp@striblingwhalen.com
Stribling~Whalen Financial Group, 620 Spring St. SE, Gainesville, GA 30501, PH: 678-989-0834
