Wealth is a mindset that combines the material and spiritual — rooted in knowledge, wisdom and trust
by John Tetzloff
Advanced Case Specialist
As we approach the holiday season our thoughts turn to faith, family, friends, and year-end planning. Often times when I’m meeting with folks at this time of year the thoughts of tax planning and charitable giving come into the discussion. After a thorough review of a person’s assets, goals, and objectives we then present various options for them to consider.
One of the best ways currently to provide for our favorite charities now and into the future is through the use of IRAs and Qualified Retirement plans. While these may not apply to everyone, it is good to understand the available options.
1. Adding your favorite charities as a beneficiary of your qualified retirement plans and IRAs. What this means is that upon your death, your charities receive all or a portion of your IRA monies tax free1. This frees up more tax-advantaged dollars as inheritance to your heirs rather than them paying income tax on the IRA inheritance.
2. Use the Qualified Charitable Distribution option. If over age 70-and-a-half we can now take distributions from our IRAs and Qualified Plans and if transferred directly to your charities there is no income tax payable. This also can be used to satisfy the Required Minimum Distribution. If at this time a person is not interested in creating a charitable legacy, we at least recommend using this distribution each year for your normal weekly giving to your church. Calculate what you plan to give for the year, request a direct transfer of that amount to your church, and pay no income tax on the gift.
These are just a couple options used for good tax planning and charitable giving. When considering your Charitable planning options, please contact your local sales representative for some good, pertinent information based on your plans and wishes. Also, don’t forget we have a wonderful option for charitable planning through the Catholic United Financial Foundation that also will provide excellent planning choices and options.
May God bless you and your families.
1Catholic United Financial and John Tetzloff are not permitted to give tax or legal advice. The information given is based on our understanding and interpretation of laws and regulations currently in effect. You may wish to consult your personal tax or legal advisor with questions about your specific situation.