2017 Congenital Heart Walk & Why I’m so Involved

Contributed by: Emily Lucido

Photo Source: http://www.congenitalheartwalk.org/

My name is Emily and I work as a client service associate here at The Center. I’m honored and proud to announce that The Center will be one of many sponsoring the Congenital Heart Walk in September of this year. This is something that means a lot to me and I feel so happy to work for a place that is so supportive.

Congenital Heart Disease, more commonly known as CHD, is the most common birth defect in the U.S. with nearly 1 in 100 babies born with CHDs each year. I was one of those babies many years back, which is why I am here promoting the walk today. I was born with a heart condition that affects my right ventricle. The name of my condition is pulmonary atresia – but I’ll spare you from any more medical terminology. I had open heart surgery when I was born and 2 more surgeries after that, all before the age of 3. I now live a very healthy life and am becoming more involved volunteering with heart related programs.

The Center jumped on the idea to be involved in the heart walk and exceeded my expectations when they offered to sponsor and support me (and everyone else out there!) who has Congenital Heart Disease as well. CHD research and programs are severely underfunded. The Congenital Heart Walk aims to correct this problem.

The Congenital Heart Walk (CHW) is the only national event series dedicated to fighting congenital heart disease. Since 2010, CHW has raised more than $8 million. CHW is a partnership between the two leading national organizations dedicated to fighting CHD – The Children’s Heart Foundation (CHF) and the Adult Congenital Heart Association (ACHA).

The information for the event is listed below:

• Date: Saturday, September 23, 2017

• Location: Boulan Park – Troy, MI

• Event Schedule: Festivities begin at 9:00 AM

• Expected attendance: 1,000 + Participants

• Visit: www.congenitalheartwalk.org for more information!

I will be speaking at the Congenital Heart Walk this year, which is a huge honor for me. For those of you who would like to come support and walk with us at The Center, join by registering with the link below. If you have any trouble accessing the website or registering, please feel free to give me (Emily) a call.

To register for the walk with The Center Team follow this link:

http://events.congenitalheartwalk.org/goto/TheCenterTeam

I truly appreciate you taking the time to read about my story and the Congenital Heart Walk. Thank you all for your support.  We look forward to walking with you in the fall!

Emily Lucido is a Client Service Associate at Center for Financial Planning, Inc.®

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Links are being provided for informational purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

The Center's Day of Creative Giving

Contributed by: Laurie Renchik, CFP®, MBA

There are many ways to give time, talent and resources through volunteering.  Recently, a group of Center clients, friends, and team members came together with energy and purpose to lend a hand for an afternoon of Creative giving.  The goal was to make 125 care packages for children who are experiencing a stay at C.S. Mott Children’s Hospital in Ann Arbor.   We reached our goal and hope that the goody bags will bring smiles to the faces of children receiving care at C.S. Mott.

Handmade cards decorated the outside of the packages. Volunteers filled the bags with snack items, huggable stuffed animals, coloring books, and puzzles. The smiles were abundant, and the sense of purpose created a positive vibe for all.  

The Center Charitable Committee, Creative Committee, and team members all pitched in to help with the planning and set up.  Clients and friends of the Center came together in support and created a multitude of brightly colored Care Packages filled with tangible items and a sprinkle of love and caring. 

In the words of Oprah Winfrey; “I don’t think you ever stop giving.  I really don’t.  I think it’s an ongoing process.  And it’s not just about being able to write a check.  It's being able to touch somebody’s life.”

Thanks to all that contributed to the success of our “Creative Giving” day!

Laurie Renchik is a partner and Certified Financial Planner™ at the Center for Financial Planning, Inc.®

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Funding the Future - A Rockin’ Good Time

Contributed by: Clare Lilek

On April 18th, The Center proudly sponsored the band Gooding, through the non-profit Funding for the Future, to play at Hazel Park High School. The event was a little over an hour and involved fun rock music, excited high schoolers, and important lessons in financial literacy.

Funding for the Future is a nonprofit that coordinates bringing the band Gooding to different high schools, student groups, and kid oriented organizations to not only provide a free concert, but also give a crucial and entertaining lesson in financial literacy. All too often, some of our children reach adulthood without ever hearing about the impact of weekly savings, the perils of credit cards and credit scores. “Put your money away and let it work for you,” was a common sentiment that was said throughout the event, encouraging students to save money each week in an account like a Roth IRA, in order to let that money grow over time—a practice we heartily support at The Center!

The band Gooding is passionate about financial literacy and sharing that message with music. Their songs aren’t about stocks and bonds, however; they play exciting and down to earth rock music which endears them to the kids, allowing their message after the songs are over to sink in with more credibility. The band is inspired to bring financial literacy to students all over the country because of their own lack of education when it came to handling money as they grew up. We see examples of celebrities and pro-athletes that go broke shortly after making it big. The band explained that mindset comes from growing up and thinking one check, one lottery ticket, one record deal is going to change it all; but he encourages the kids to realize that change is within them and doesn’t come from the outside.

Gooding also talked about the perils of opening up too many credit cards, of not knowing your credit score and what affects it. He stresses, though, that money isn’t bad, it’s our lack of knowledge around money that can mess us up financially. That’s why he encourages good financial behavior, like putting $50 a week in a Roth IRA once you start working. You start young and have that money grow for you exponentially over time. He showed the students real examples and charts in order to encourage the students to take the idea of retirement savings seriously. He also talked about creating SMART goals; having Specific, Measurable, Attainable, Realistic, and Time oriented goals in order to plan and budget successfully. It was a lesson mixed with long term planning and tangible strategies the students could implement right away.

After thirty minutes of fun rock music and a thirty minute crash course in basic financial literacy, the students left smiling and so did we! It’s a part of The Center’s mission to spread financial literacy to the community around us, and sponsoring Funding for the Future and the band Gooding was just one way in which we do so. We look forward to many future partnerships in order to spread the word!

Clare Lilek is a Challenge Detroit Fellow / Client Service Associate at Center for Financial Planning, Inc.®

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Any opinions are those of Clare Lilek and not necessarily those of Raymond James.

More Potential Changes Under the Trump Administration

Contributed by: James Smiertka

The New Year always brings changes, but this year may be particularly notable. We have a new U.S. President & our Congress is ruled by a Republican majority. This surely brings a new direction for the country and also the prospect of policy and regulatory changes.

As we know, President Trump made tax reform a key issue during his campaign, and he has proposed wide-ranging changes to the U.S. tax system. Additionally, with the GOP with majority control of the House and the Senate, there is a better chance for an overhaul of the federal tax system than in the past. Changes will most likely not be quickly completed, and it is likely that any tax reform will not take place until late 2017 or early 2018.

Here are some of the potential changes:

Estate Tax

• Trump’s plan seeks to repeal the current estate tax as well as the alternative minimum tax (AMT) and generation-skipping transfer tax (GSTT)

• Total repeal is unlikely

• $10 Million exemption (per couple)

  • Assets above this amount would be subject to capital gains tax

• Likely change to the asset basis step-up for heirs

  • Date of death value rules likely preserved for heirs of smaller estates

  • Limited basis step-up for heirs inheriting from larger estates

• There is also the potential for state estate taxes to disappear as they are based on the federal estate tax system

Gift Tax

• Will most likely stick around in some form

  • Prevents income shifting from donors in high tax brackets to the donated in lower tax brackets

• If the estate tax is repealed, we could be looking at a change to the lifetime gift tax exemption in the neighborhood of around $1 Million or higher (lifetime), with the annual gift tax exclusion preserved (currently $14,000/year)

There are a wide range of possible combinations of estate & gift tax reform, and potential tax planning opportunities depending on the details of that reform. Here are some potential scenarios, per Michael Kitces:

While there are many potential planning scenarios for both individuals and businesses, nothing is certain. Only very broad strokes have been “painted” thus far. Regardless, Center for Financial Planning, Inc. is always staying up to date with the most recent changes. Make sure to speak with your financial advisor if you have questions on any of these topics.

Also, make sure to check out our previous blog on the new administration’s potential impact to marginal tax brackets, standard deductions, and capital gains tax.

James Smiertka is a Client Service Associate at Center for Financial Planning, Inc.®

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The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of James Smiertka and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Sources:

• Kiplinger Tax Letter, Vol. 92, No. 2 (1/27/17)
• http://www.forbes.com/sites/ashleaebeling/2016/11/09/will-trump-victory-yield-estate-tax-repeal/#aef41902bf2a
• https://www.kitces.com/blog/repeal-estate-gift-taxes-and-carryover-basis-under-president-trump/
• http://www.forbes.com/sites/nextavenue/2016/12/12/what-the-trump-tax-proposals-mean-for-high-net-worth-retirees/#5f7253b17ef4
• http://www.cnbc.com/2017/01/22/how-trumps-proposals-may-affect-every-income-tax-bracket.html

Year-End Financial Checklist: Tips to End the Year on a High Note (UPDATED)

Contributed by: Jaclyn Jackson

This post was written in December 2015 as a helpful reminder of things you can do to strengthen your finances and get things in order for the upcoming year. Many of the tips are still useful, but I’ve updated to reflect potential policy changes in 2017.   

1. Harvest your losses – Tax-loss harvesting generates losses that can be used to reduce current taxes while maintaining your asset allocation. Take advantage of this method by selling the investments that are trading at a significant loss and replacing it with a similar investment. In light of potential 2017 tax cuts, it is also important to consider whether you may land in a lower tax bracket. If that is the case, postpone realizing capital gains and losses until next year.

2. Taking Advantage of Deductions – If marginal tax rates decrease significantly in 2017, now is a great time to get the most “bang for your buck” from deductions. In other words, consider paying medical expenses, real property taxes, fourth quarter state income taxes, or your January mortgage this month instead.

3. Max out contributions – While you have until you file your tax return, it may be easier to take some of your end-of-year bonus to max out your annual retirement contribution.  Traditional and Roth IRAs allow you to contribute $5,500 each year (with an additional $1,000 for people over age 50). You can contribute up to $18,000 for 401(k)s, 403(b)s, and 457 plans.

4. Take RMDs – Don’t forget to take the required minimum distribution (RMD) from your IRA.  The penalty for not taking your RMD on time is a 50% tax on what should have been distributed. RMDs should be taken annually starting the year following the year you reach 70 ½ years of age.

5. Rebalance your portfolio – It is important to rebalance your portfolio periodically to make sure you are not overweight an asset class that has outperformed over the course of the year. This helps maintain the investment objective best suited for you.

6. Use up FSA money - If you haven’t depleted the money in your flexible spending account (FSA) for healthcare expenses, now is the time to squeeze in those annual check-ups. Some plan sponsors allow employees to roll over up to $500 of unused amounts, but that is not always the case (check with your employer to see if that option is available to you).

7. Donate to a charity – Instead of cash, consider donating highly appreciated securities to avoid paying capital gains tax. Typically, there is no tax to you once the security is transferred and there is no tax to the charity once they sell the security. If you’re not sure where you want to donate, a Donor Advised Fund is a great option. By gifting to a Donor Advised Fund, you could get a tax deduction this year and distribute the funds to a charity later. Again, considering the possibility of decreased marginal tax rates in 2017, you may be better off moving your 2017 contributions into 2016.

8. Review your credit score – With all of the money transactions done during the holiday season, it makes sense to review your credit score at the end of the year. You can go to annualcreditreport.com to request a free credit report from the three nationwide credit reporting agencies: Equifax, Experian, and TransUnion. Requesting one of the reports every four months will help you keep a pulse on your credit status throughout the year.

Bonus:  If there have been changes to your family (new baby, marriage, divorce, or death), consider these bonus tips:

• Adjust your tax withholds

• Review insurance coverage

• Update financial goals, emergency funds, and budget

• Review beneficiaries on estate planning documents, retirement accounts, and insurance policies.

• Start a 529 plan

Jaclyn Jackson is a Portfolio Administrator and Financial Associate at Center for Financial Planning, Inc.®

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Jaclyn Jackson and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. RMD's are generally subject to federal income tax and may be subject to state taxes. Consult your tax advisor to assess your situation. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Rebalancing a non-retirement account could be a taxable event that may increase your tax liability.

The Center Partnered with Toys for Tots Again!

Contributed by: Jeanette LoPiccolo, CRPC®

When you hear the words “Toys for Tots,” what comes to mind? For me, it’s the image of a wide eyed child filled with anticipation, unwrapping a colorful present on Christmas morning. I immediately smile when I think of the toy cars, dolls, and stuffed animals that generous patrons have given to families in need. I reflect on the relief that the parents may feel knowing that a present will be under the tree for their child.

How did this tradition start? It’s been around for so long that some of us may not know the history – I didn’t. After joining The Center’s charitable committee I had the opportunity to participate in this year’s collection. I was so impressed to learn that Diane Hendricks, the spouse of a Major in the Los Angeles Marine Reservists, hand crafted a doll in hopes of giving it to a needy child for Christmas in 1947.

Diane and her spouse, Bill, soon learned that there was no organization that existed to make her wish happen. So Bill decided to start the Toys for Tots project. Toys for Tots became an immediate success and the US Marine Corps Reserve has been collecting toys ever since!

Wondering how the toy drive works? Over the years, Marines have established close working relationships with social welfare agencies, churches and many local community agencies which are well qualified to identify the needy children in their community. These organizations play an important role in the distribution of the toys. Over 97% of the donations go to their mission of providing a much needed gift of joy to the less fortunate children on their community. In 2015, the program took place in 782 communities covering all 50 States, the District of Columbia, Puerto Rico, and the Virgin Islands.  

The Center is pleased to participate with the Oakland County chapter of Toys for Tots for the second year in a row. The Center and our friends have shown their generosity once again this year. With generous donations and happy hearts the collection boxes were overflowing!   

On behalf of The Center, thank you for your donations to the Toys for Tots project. We wish our community, all of our friends a very happy holiday season!

Jeanette LoPiccolo, CRPC® is a Client Service Manager at Center for Financial Planning, Inc.®

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Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/ or members.

Humbling Experience: Volunteering with Humble Design

Contributed by: Center for Financial Planning, Inc.®

On December 7th, eleven volunteers from The Center braved the cold and made their way to Pontiac to meet at the Humble Design warehouse. There we learned about the truly humble beginning of this non-profit that furnishes homes for families who have previously experienced homelessness. Humble Design goes into homes, procured by agencies, and adds furnishings—like a bed for each child, kitchen supplies, and furniture for living spaces—as well as character to the previously empty space. They take each unique family into consideration and decorate to their needs and likings. Each child gets their own bed, something most children living in shelters don’t have the luxury of experiencing, and those kids then for the first time have their own space to learn, to dream, and to live. Every kitchen is furnished with new pots and pans procured through valuable partnerships Humble Design has initiated. Most importantly, every house has a dining room table that is set and ready for family meals; again something most transient families are unaccustomed to. Humble Design attains all these materials from gracious donations, advantageous partnerships with organizations, and companies, like Center for Financial Planning, who sponsored a specific family.

We at The Center were so excited to start this partnership with Humble Design after having a few of our partners work with them in the past. In October, we had a couple employees volunteer in the warehouse, sorting donations and the like, and in December we were able to extend this partnership further to sponsor the design and furnishing of a house for a family of four in Detroit. Our volunteers carried boxes filled with pictures, lamps, pots and pans, in order to design and stock the house with the essentials and designed it in a truly beautiful way. At the end of the day the family was able to move into an already furnished house with all of their needs covered, and have it feel like a readymade home. We may have provided the things and donated our time, but that family will add the life, the love, and the happiness to make the house a home. We are truly grateful to have been a part of such a wonderful opportunity to make a family feel safe and welcomed in a place to call their own.

Raymond James is not affiliated with and does not endorse the services of Humble Design.

Four Considerations for Year End Tax Planning

Contributed by: Nick Defenthaler, CFP®

With the end of the year fast approaching, end of year tax planning is top of mind for many clients. At The Center, we are proactive throughout the entire year when it comes to evaluating a client’s current and projected tax situation but now is typically the time most people really start thinking about it. Let’s be honest, how many of us feel like we don’t pay ENOUGH tax? Most clients want to lower their tax bill and be as efficient with their dollars as possible.

Here is a brief list of items we bring up with clients that could ultimately lead to lowering one’s tax bill for the year:

1. Are you currently maximizing your company retirement account (401k, 403b, Simple IRA, SEP-IRA, etc.)?

   • These plans allow for the largest contributions and are deductible against income.

     • In our eyes, this is often times the most favorable way to help reduce taxes because it also goes towards funding your retirement goals! 

2. How are you making charitable donations? 

   • Consider gifting appreciated securities to charity instead of cash if you have an after-tax investment account with appreciated positions. By doing so, you receive a full tax-deduction on the value of the security gifted to the charity and you also avoid paying capital gains tax – a pretty good deal if you ask me! 

     • Donor Advised Funds are a great way to facilitate this transfer and are becoming increasingly popular lately because of the ease of use and flexibility they provided for those who are charitably inclined.

   • If you’re over the age of 70 ½ and own a Traditional IRA, taking advantage of the now permanent Qualified Charitable Distribution (QCD) could be a great option as well. 

3. Should I be contributing to an IRA? If so, should I put money in a Traditional or Roth?

   • As I always say, in financial planning, there is never a “one size fits all” answer – it really depends on your income and your current and projected tax bracket

     • Keep in mind, not all IRA contributions are deductible, your income and availability to contribute to a company sponsored retirement plan plays a major role.

     • If your current tax bracket is lower than your projected tax bracket in the future, it more than likely makes sense to invest within a Roth IRA, however, as mentioned, everyone’s situation is different and you should consult with your advisor before making a contribution. 

4. Do you have access to a Health Savings Account (HSA) or Flex Spending Account (FSA) at work?

   • These are fantastic tools to help fund medical and dependent care costs in a tax-efficient manner.

     • HSAs can only be used, however, if you are covered under a high-deductible health plan and FSAs are “use it or lose it” plans, meaning money contributed into the account is lost if it’s not used throughout the year. 

This is a busy time of year for everyone. Between holiday shopping, traveling, spending time with family, completing year-end tasks at work, taxes are often times lost in the shuffle.  We encourage you to keep your eyes open for our year-end planning letter you will be receiving within the next few weeks which will be a helpful guide on the items mentioned in this blog as well as other items we feel you should be keeping on your radar.

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc.® Nick is a member of The Center’s financial planning department and also works closely with Center clients. In addition, Nick is a frequent contributor to the firm’s blogs.

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Please include the following to all of the above: Please include: The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Nick Defenthaler and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investments mentioned may not be suitable for all investors. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

How to Make Grants from Donor-Advised Funds

Contributed by: Matthew E. Chope, CFP®

I talk to a lot of clients who have set up Donor-Advised Funds or family foundations and are confused. They’ve figured out how to put money in, but how to make grants isn’t always as clear. The IRS prohibits using these funds to satisfy a pledge. That doesn’t prohibit you from supporting organizations like churches, but it does mean you need to follow certain steps.

The first step is to talk to your attorney and your CPA. They can give you tax and legal advice about making a grant. Carla Hargett, the Vice President of Raymond James Trust, told me if you’re planning on giving to your church, for example, she believes the best way to handle the Donor-Advised Fund Grants is to start by discharging any pledge made in the past. Donor-Advised Funds cannot be used to satisfy a pledge. You can let your church know you intend to provide General Support for a certain amount of money and year(s) going forward. The amount can be close to an amount you’ve given in the past – that’s up to you. But any legally enforceable pledges must be cancelled first. This should stop the audit trail if the IRS ever decides to get into the particulars with a grantor. So make sure the grant requests from your Donor-Advised Fund should say something like "2016 General Support.”  

When pledge time comes around, I recommend that you write on the pledge card something like, "I intend to request a distribution of $XXXX.XX from my Donor-Advised Fund during the 20XX fiscal year." Your church or charitable organization will be familiar with this language and can use it for budget planning similar to a pledge.

We just want to make sure that Grantors of donor-advised funds are doing things as accurately as possible and if an IRS auditor someday digs into your grants, you’ll have nothing to worry about.

Matthew E. Chope, CFP ® is a Partner and Financial Planner at Center for Financial Planning, Inc. Matt has been quoted in various investment professional newspapers and magazines. He is active in the community and his profession and helps local corporations and nonprofits in the areas of strategic planning and money and business management decisions.

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The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Matt Chope and not necessarily those of Raymond James. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Qualified Charitable Distributions: Giving Money while saving it

Contributed by: Nick Defenthaler, CFP®

Late last year, the Qualified Charitable Distribution (QCD) from IRAs for those over the age of 70 ½ was permanently extended through the Protecting Americans from Tax Hikes (PATH) Act of 2015. Previously, the QCD was constantly being renewed at the 11th hour in late December, making it extremely difficult for clients and financial planners to properly plan throughout the year. If you’re over the age of 70 ½ and give to charity each year, the QCD could potentially make sense for you. 

QCD Refresher

The Qualified Charitable Distribution only applies if you’re at least 70 ½ years old. It essentially allows you to donate your entire Required Minimum Distribution (RMD) directly to a charity and avoid taxation on the dollars coming from your IRA. Normally, any distribution from an IRA is considered ordinary income from a tax perspective, however, by utilizing the QCD the distribution from the IRA is not considered taxable if the dollars go directly to a charity or 501(c)(3) organization.    

Let’s look at an example:

Sandy, let’s say, recently turned 70 ½ in July 2016 – this is the first year she has to take a Required Minimum Distribution (RMD) from her IRA which happens to be $25,000. Sandy is very charitably inclined and on average, gifts nearly $30,000/year to her church. Being that she does not really need the proceeds from her RMD, but has to take it out of her IRA this year, she can have the $25,000 directly transferred to her church either by check or electronic deposit. She would then avoid paying tax on the distribution. Since Sandy is in the 28% tax bracket, this will save her approximately $7,000 in federal taxes!

Rules to Consider

As with any strategy such as the QCD, there are rules and nuances that are important to keep in mind to ensure proper execution:

• Only distributions from a Traditional IRA are permitted for the QCD.

• Employer plans such as a 401k, 403b, Simple IRA or SEP-IRA do not allow for the QCD

• The QCD is permitted within a Roth IRA but this would not make sense from a tax perspective being that Roth IRA withdrawals are tax-free by age 70 ½ *

• Must be 70 ½ at the time the QCD is processed.

• The funds from the QCD must go directly to the charity – the funds cannot go to you as the client first and then out to the charity.

• The amount you can give to charity through the QCD is limited to the amount of your RMD.

• The most you can give to charity through the QCD in a given year is $100,000, even if one’s RMD exceeds that amount.

The QCD can be a powerful way to achieve one’s philanthropic goals while also being tax-efficient. The amount of money saved from being intentional with how you gift funds to charity can potentially keep more money in your pocket, which ultimately means there’s more to give to the organizations you are passionate about. Later this month, we will be hosting an educational webinar on philanthropic giving – click here to learn more and register, we hope to “see” you there!

Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted.

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc.® Nick is a member of The Center’s financial planning department and also works closely with Center clients. In addition, Nick is a frequent contributor to the firm’s blogs.

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The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. Any opinions are those of Nick Defenthaler and are not necessarily those of Raymond James. Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.