Use Tax Deferred Accounts
for Your Pledge to All Saints’
Pay the remainder of your 2019 pledge or your 2020 pledge using tax savings strategies.
If you have attained the age of 70 ½ when you must take a required minimum distribution (aka, RMD, in investor lingo) from your taxable retirement account(s), you may be able to benefit financially in two ways. You will not have to pay tax on the distribution as taxable income and you may avoid a Medicare-indexed surcharge if your income is higher than the maximum allowed.
If you would like to designate All Saints’ Episcopal Church as the recipient (or partial recipient) of this year’s RMD you should contact your financial advisor or the company that holds your retirement investments (such as Fidelity, Charles Schwab, Vanguard – there are many others). Then make a request to have the amount transferred directly from your account to All Saints’ via check. You will be required to provide the All Saints’ tax ID number which is 86-0133389 so they know funds are going to a tax-exempt organization. It is helpful to the church office if we know to look for a check issued on your behalf and to which pledge year it should be applied. We will notify you when it has arrived. You may want to set this up in November or early December so that checks are dated and mailed in a timely manner and received by December 31 because investment companies often get swamped with year-end requests.
When you turn age 70 ½, the IRS requires you to take a distribution or pay a 50 percent penalty of the RMD amount. Wouldn’t you prefer to decide how your retirement funds are used than leaving it to the IRS?
Gifts of Stock, Bonds or Mutual Funds
A second option for giving to All Saints’ is through a gift of individual company stock, bond, mutual fund or other investment that you may have bought or inherited and has increased in value through the years. When donated, you will receive credit in your giving statement for the current market value at the time the stock is transferred to All Saints’. Please contact the church office for the information you will need to give to your financial organization to effect the transfer. It takes three business days from the time the trade is initiated until it shows up in our account.
If you have questions, please call or email Barbara Anderson in the church office: firstname.lastname@example.org.