[Haggar]

Here's an article from the Wall Street Journal about QCD's.
If you're eligible and you give charity an excellent way to reduce taxable income and the Income that may increase your medicare premiums.

[Altavia]

Charitable Gift Annuities are another option.

What is a Charitable Gift Annuity? | Fidelity Charitable

[Boomer]

Thank you, Haggar, for that article.

The first year I did this, I filled out the form and had Fidelity write the check to the charity and then send it to me, and I then sent it to the charity, after making a copy, and got the acknowledgement for tax time.That probably sounds like a bit of a rigmarole to some, but it really wasn’t.

Then I learned that I could use an IRA checking account with Fidelity for the QCD, as long as all the rules are followed and good records kept. (Either way, you need to keep your own records, of course.)

For those who give to charity anyway, it seems silly to not use the QCD as part of the RMD. It is not that complicated.

I have wondered if financial advisors, in general, make their clients aware of this way to save on taxes and maybe to avoid IRMAA. And if not, why not? I know most advisors are not tax accountants, but they should at least give clients a heads-up to learn about the QCD.

Boomer

[manaboutown]

Just received my IRMAA notice from Soc. Sec. today. It ain't pretty. Do what you can to avoid IRMAA if possible.

[dewilson58]

Originally Posted by manaboutown

Just received my IRMAA notice from Soc. Sec. today. It ain't pretty.

That's the bad news as a result of good news.

[Boomer]

Originally Posted by manaboutown

Just received my IRMAA notice from Soc. Sec. today. It ain't pretty. Do what you can to avoid IRMAA if possible.

Well, manaboutown, you could get married and file jointly to get a whole lot more room between you and IRMAA.

Boomer

[Pugchief]

Originally Posted by Boomer

Well, manaboutown, you could get married and file jointly to get a whole lot more room between you and IRMAA.

Boomer

LOL. Save money on the front end to possibly lose way more on the back end? Vegas oddsmakers would advise you otherwise.

[manaboutown]

Originally Posted by Boomer

Well, manaboutown, you could get married and file jointly to get a whole lot more room between you and IRMAA.

Boomer

I wish. IRMAA in my case is maxed out in part due to LTCGs on assets held roughly 40 years as I am trying to simplify my life by selling off commercial rental properties, one per year. If she were not already there it would just throw my new wife into IRMAA's and NIIT's jaws along with me.

[Priebehouse]

Originally Posted by Haggar

Here's an article from the Wall Street Journal about QCD's.
If you're eligible and you give charity an excellent way to reduce taxable income and the Income that may increase your medicare premiums.

I haven't had the AGI to itemize in 10 years or more!

[crash]

Originally Posted by Haggar

Here's an article from the Wall Street Journal about QCD's.
If you're eligible and you give charity an excellent way to reduce taxable income and the Income that may increase your medicare premiums.

Good info thanks.

[Haggar]

Originally Posted by Boomer

Thank you, Haggar, for that article.

The first year I did this, I filled out the form and had Fidelity write the check to the charity and then send it to me, and I then sent it to the charity, after making a copy, and got the acknowledgement for tax time.That probably sounds like a bit of a rigmarole to some, but it really wasn’t.

Then I learned that I could use an IRA checking account with Fidelity for the QCD, as long as all the rules are followed and good records kept. (Either way, you need to keep your own records, of course.)

For those who give to charity anyway, it seems silly to not use the QCD as part of the RMD. It is not that complicated.

I have wondered if financial advisors, in general, make their clients aware of this way to save on taxes and maybe to avoid IRMAA. And if not, why not? I know most advisors are not tax accountants, but they should at least give clients a heads-up to learn about the QCD.

Boomer

The answer is no. My advisor who is my client and who has referred many clients does not - to the best of my knowledge. I gave to seven charities through QCDs and she had to prepare seven forms to get my seven checks. They claimed she doesn't have any clients QCDs apply to but I suspect she doesn't want the extra work.

[Boomer]

Originally Posted by Boomer

- - - - - - - - - - -

- - - - - - - - - - -

I have wondered if financial advisors, in general, make their clients aware of this way to save on taxes and maybe to avoid IRMAA. And if not, why not? I know most advisors are not tax accountants, but they should at least give clients a heads-up to learn about the QCD.

Boomer

Originally Posted by Haggar

The answer is no. My advisor who is my client and who has referred many clients does not - to the best of my knowledge. I gave to seven charities through QCDs and she had to prepare seven forms to get my seven checks. They claimed she doesn't have any clients QCDs apply to but I suspect she doesn't want the extra work.

Hi Haggar,

I think you’re exactly right.

Add to that — not telling the client could create an opportunity for the “advisor” to “advise” to reinvest the money in a taxable account that would remain under “advisement.”

Yep. Just whose best interest is that kind of omission in, anyway. (That was a rhetorical question, of course, but it’s the kind of thing that always brings me full circle back to my jaded view of most advisors. )

We do not yet use an advisor, but I did find one that has a CPA as part of their small team and takes a faceted approach to include tax-planning. (They are in my hometown though.)

We have not hired them, so far. Meanwhile, we just plug along — but our taxes are done by a CPA.

Boomer

[jeepjim]

My advisor did present qualified charitable contributions as an efficient way to give to charities. Unfortunately Charlie Swab(not the real name) sent out the checks as directed to my three charities and then a short time latter they sent out three more checks to those charities from my account without my authorization! It has been a nightmare. Wish me luck at tax time.

QCD are a good tool but can be a problem

[LuvtheVillages]

Originally Posted by Priebehouse

I haven't had the AGI to itemize in 10 years or more!

When using a Qualified Charitable Distribution, the money goes directly to the charity AND counts as part of your Required Minimum Distribution. However, (here’s the important part) it is NOT included in your taxable income, like the RMD usually is.
No need to itemize to get the benefit.

[Aces4]

Originally Posted by Haggar

Here's an article from the Wall Street Journal about QCD's.
If you're eligible and you give charity an excellent way to reduce taxable income and the Income that may increase your medicare premiums.

I must be missing something... it's important not to pay $4,000. premium for Medicare insurance when your joint income is over $246,000 a year? What a burden! But I guess it's important to fleece the younger generation for one's costs.

I think I'll go wash my socks and underwear.