This is the Time of Year to Think About Your Year-End Giving. Here are Some Things to Consider to Create an Impact Within Your Community.

People at a meeting table
Joe Carter meeting with the Payne family.

2020 has been a trying year, but with the holiday season nearly upon us, giving back becomes front-of-mind for many, and in this unprecedented year, that support is needed more than ever.

A few things we have for you to remember – First visit with those organizations you wish to support to better understand the impact your gift will make if you decide to make a year-end gift. Second, meet with your financial advisor to better understand what assets would make the best gifts and what tax benefits have changed in 2020. For cash gifts in 2020 you can receive a charitable deduction up to 100% of your adjusted gross income. Appreciated stocks, bonds, mutual funds, property and even cash gifts have the potential for greater charitable deductions in 2020.

In addition, individuals age 70.5 and older with a traditional IRA have historically had the opportunity to roll their required minimum distribution directly to a charity without reporting it as income. For 2020, the age was raised to 72 with no mandatory distribution requirement. However, you can still take advantage of the rollover at age 70.5 for charitable gifts.

At the Oklahoma City Community Foundation, our expert staff and many charitable tools can help you make a charitable impact. With 365 charitable organization endowment funds, hundreds of scholarships and the ability to create a donor advised fund or legacy gift, we are prepared to help you make a difference in the community. In addition, GiveSmartOKC.org, our online date hub, donors can discover more than 300 central Oklahoma charities, their programs and how they benefit the community to make informed decisions.

By working with the donor services team at the Oklahoma City Community Foundation, you can be sure you can make decisions about the local nonprofit organizations you wish to support and what your impact will have on the community.

If you would like more information on how you can make a greater impact in your community through year-end gifts, call Joe Carter at 405-235-5603, or visit OCCF.org today.

What is the SECURE Act and How Will it Affect Your Retirement- Here are Some Important Things You Will Need to Know About this 2020 Legislation and an Opportunity.

The Ellis Family

Setting Every Community Up for Retirement Enhancement Act, also known as the SECURE Act will make it easier for many to save for retirement. In addition, it will make retirement plans more accessible to more people. As of January 1, 2020, most changes based on this new law went into effect.

The SECURE Act pushes back the age at which traditional IRA plan participants need to take required minimum distributions from 70.5 to 72. Prior to the law being passed, non-spousal IRA beneficiaries could choose to stretch their distributions (and taxes) throughout the life expectancy with a few exceptions. Now under the SECURE Act, beneficiaries will be forced to withdraw assets within 10 years after the death of the IRA account holder, receiving larger amounts distributed over a shorter period and potentially their tax liability in that time period.

Even though the SECURE Act closed the door on the stretch IRA strategy, it opened the door for those that like the benefits of the stretch strategy and would like to support charity with a gift from their will or trust. Rather than force your heirs to take full distribution over a ten- year period, you can instead use a Charitable Remainder Unitrust (CRUIT) to provide for your family and charity. The way it works – the IRA is transferred at the death of the surviving spouse to establish a CRUT. Since the Unitrust is tax exempt, no income tax is paid when the IRA is distributed to the trust. The full IRA balance is invested and grows with time as did the IRA. A minimum of 5% or maximum 50% taxable distribution of the trust is paid to children for life OR for a term of years not to exceed 20. At the end of the trust, the remaining balance is distributed to the charity of the original IRA owner’s designation.

To summarize, this strategy grants owners of an IRA several options as it relates to the principle and distribution. 1. How long the proceeds can be spread out and 2. The interest rate the trust will pay. This will allow you to benefit both your heirs and charity(s) in a tax efficient way.

If you would like more information on how you can meet your charitable goals, call Joe Carter at 405-235-5603 or visit OCCF.org.