Heads Up!

Posted on February 2, 2016 by The Weekly Commentary

Recent legislation made permanent the provision for individuals age 70 ½ and older to be allowed to make tax-free distributions of any of their required minimum distribution or up to $100,000 from individual retirement accounts (IRAs) to a qualified charitable organization. These types of IRA distributions are being referred to as “Qualified Charitable Distributions” or “QCD”.

As this money is not included in taxable income, it is not included in charitable contributions if you itemize deductions for income tax purposes. For some people, you may have the same bottom line tax result by using the QCD or making the contribution from personal funds. For others, especially those who do not itemize, it could help you save taxes. For some people, the QCD could reduce the portion of Social Security which is taxed on Form 1040. Finally, the QCD could help higher income Medicare participants to reduce the additional premium for Medicare Part B or prescription drug coverage.

If you feel this may apply to your tax situation or need more information, please contact us as soon as possible. If you do not contact us, we will assume that we can proceed with the required minimum distribution withdrawal as currently scheduled.

Valley National Financial Advisors, and its family of companies, has been in the Lehigh Valley since 1985. The company is independent and locally owned. As a respected and trusted organization, our relationships with many clients and their families transcend generations. We have the expertise to provide clients with financial strategies to effectively manage their existing assets and to provide for the eventual transfer of their wealth.

Our one-stop service model includes: Financial Planning – Investment Management – Estate Planning – Retirement Planning – Education Planning – Tax Planning & Preparation – Insurance Planning – Trust Services, offered as a Trust Representative Office of National Advisors Trust Company, FSB – ExecutiveEdgeTM, Personal Financial Planning for Corporate Leaders. Our services are provided by a team of objective professionals and managed by one contact person – your personal financial advisor.

Valley National Financial Advisors is proud home of the Lehigh Valley’s most CFP® – Certified Financial Planner Professionals^TM. Among other honors, Valley National has been voted Best Financial Planner in the Lehigh Valley seven times by the readers of Lehigh Valley Magazine, and ranked among FA Magazine’s Top RIAs and AdvisorOne’s Top Wealth Managers.

For more than years, our firm has been devoted to helping our clients to achieve their hopes, dreams and aspirations. This requires a delicate balance between the science of financial planning and the art of understanding the feelings and emotions of our clients and their families.

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