December 9, 2016

Investing with Faith / Joanna Feltz

Year-end and taxes: Quick tips for financial management

Joanna FeltzHello readers. I am excited to debut Investing With Faith, a new column in The Criterion that offers helpful financial tips and information in regard to planned giving and how you can create a legacy that’s invested in faith.

We hope to provide helpful insight to smart financial management, and how you can support your favorite causes of the Church long after you go home to God.

As you prayerfully consider creating your legacy, know that the Catholic Community Foundation is available to help you make plans and answer any questions you may have.

While April 15 stands out in our minds for taxes, the end of the calendar year is the real cut-off to ensure your gifts affect the 2016 taxes that you will pay.

Making the most of savings from retirement plans, charitable giving and more, you need to act before Dec. 31, and it will be here before you know it.

As you recount the year and look ahead to the next one, keep in mind what you can do to maximize your opportunities for tax deferral or be most tax-wise about giving.

For instance, if you are age 70 1/2 or older and subject to the required minimum distributions from your individual retirement account (IRA), consider using these required withdrawals to make charitable gifts.

IRA charitable rollovers are an easy tax-efficient option.

Simply instruct your IRA custodian to transfer the funds (up to $100,000 each year) directly to charities you choose. The transfer counts as part (or all) of your required withdrawal.

There is no deduction for your gift, but you save on taxes because the withdrawal will not raise your adjusted gross income (AGI). This is an advantage because your AGI triggers tax provisions—the 3.8 percent surtax on net investment income, income tax on Social Security payments, and Medicare premiums.

I look forward to sharing more ideas with you throughout 2017. If you have questions or would like more information, I can be reached at, or call 1-800-382-9836, ext.1482, or 317-236-1482. Have a blessed Christmas and New Year!

(Joanna Feltz is director of planned giving for the Catholic Community Foundation of the Archdiocese of Indianapolis. For more information about planned giving, log on to Tax information or legal information provided herein is not intended as tax or legal advice and cannot be relied on to avoid statutory penalties. Always check with your legal, tax and financial advisors before implementing any gift plan.)

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