As October rolls around, it is time to start planning for 2016 tax matters. Congress made the tax-free IRA rollover provision for gifts to non-profit entities permanent in 2015. This applies to donations to People’s Church, including pledge payments. People of age 70 1/2 or older can make a tax-free gift by transferring assets directly from their IRA to People’s Church. These transfers are called “qualified charitable distributions (QCD).” The obvious benefit to the donor is that they will not have to pay income tax on any appreciated profits from the investment. Such QCDs count against your required minimum distribution for the year and are deducted directly from your income up to $100,000 per year. The financial institution that holds your IRA can tell you what form to use and how to apply. If you need more information, contact Allan Hunt (hahunt@gmail.com or 269-271-0429) or your personal financial advisor for additional details.

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