IRAs and DAFs and Bunching, oh my!
Tools to enhance your charitable giving at year's end.
Lions and tigers and bears, oh my!
That’s what Dorothy was concerned about as she entered the dark forest with the Scarecrow and Tin Man in the Wizard of Oz. They tried to overcome their fear by repeating the phrase just before they encountered the ferocious Lion.
Well, the Lion wasn’t so ferocious after all. And neither are the ways to maximize your charitable gifting opportunities.
Here is a short list of curated material to help you understand some terms that may sound scary, but really are easily explained by the experts.
IRA qualified charitable distribution
Individuals 70.5 years or older with an IRA, may make direct transfers of up to $100,000 per year to charity. If married, both spouses can make a transfer. Rather than being treated as taxable income, direct transfers to charity are wholly excluded for federal income tax purposes. These transfers do not generate a charitable deduction, but the relief from tax impact is often more advantageous. Click here to read more.
DAF (Donor Advised Funds)
It's never too late to give with a Giving Fund. A giving fund allows you more time and more flexibility when you need it most at year-end. By setting up a donor advised fund, you are creating a lasting legacy and helping to do the Lord’s work. Giving is an act of worship, another way to offer your Lord a thankful response for his never-failing gifts. Click here to read more.
The timing of some deductions is within your control. If you do not have enough deductible expenses to exceed the standard deduction, you can concentrate, or “bunch,” your deductions for multiple years. That way, you may be able to itemize in some years (one way to accomplish this is through a donor advised fund—see page 17). If you do itemize, you may deduct gifts of cash up to 60 percent of your adjusted gross income. Any excess may be used as a deduction over the next five tax years.
We’ve partnered with the WELS Foundation and National Christian Foundation to do what they do best, helping you with your charitable gifting while we stay focused on protecting Life. The information shared here is from them.
Some deadlines to know if you’d like your gift to be made in 2018 for tax purposes:
• A gift by check is considered completed when the check is mailed and postmarked (USPS) by Dec. 31.
• A credit card gift must be successfully charged to your account by midnight on Dec. 31. This generally happens immediately when the gift is made.
• An electronic funds transfer (EFT) gift must be processed by WELS in 2018. The deadline for these gifts is 2:30 p.m. (Central) on Fri., Dec. 28.
Special note for qualified charitable distributions from an IRA:
For a qualified charitable distribution to count toward your current year's required minimum distribution (RMD), the funds must come out of your IRA by your RMD deadline, generally Dec. 31. (If a donor writes a check to from an IRA account, our office must be able to cash the check before Thursday, Dec. 27.)
The information contained on this website is not intended as legal advice. For legal and tax advice, we encourage you to consult an attorney or tax professional.
Please consider sharing this information with your relatives and friends who may be eligible to take advantage of this opportunity.
If you are interested in considering a gift of this nature, please contact Peter at 414-727-8176 or Contact@ALife2.com.
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