Planning Helps Reduce Financial Stress

 

While more than 15 major pieces of tax legislation have been enacted into law since the year 2000, the current tax planning environment has been heavily shaped by the American Taxpayer Relief Act of 2012, passed in January 2013, and the Protecting Americans from Tax Hikes (PATH) Act, passed in late 2015. Together, these legislative acts made permanent a number of significant tax provisions that had previously existed only in temporary form. Therefore, 2016 planning takes place in a relatively stable tax environment, although there is some degree of uncertainty regarding the potential availability of specific provisions heading into the 2017 tax year.

One of those provisions is that Individual Retirement Account (IRA) owners 70 1⁄2 years or older can make qualified charitable distributions (QCDs) from their IRAs and exclude the distribution from gross income (up to $100,000 in a year). QCDs count toward satisfying any required minimum distributions (RMDs) that would otherwise need to be made from an IRA. It is reported on IRS Form 1040, lines 15a and 15b.

Another preexisting IRA benefit is the limitless trustee-to-trustee IRA transfers. You may want to consider rolling over your 401(k) from a previous employer or existing IRA with a secular institution to an ADF Kingdom Building IRA. We offer both Roth and Traditional IRAs without annual administration or maintenance fees on the ADF invested funds. If this sounds right for you, connect with our investment services team here. We can help you streamline your transfer.

Thank you for investing in churches! As a result, ADF has made significant progress toward our 2016 goal of raising additional funding for churches. It has been very encouraging to see the response to our Investment Certificate specials. I greatly anticipate what the Lord has in store.

In this edition, I am also happy to introduce an Alliance supporting and sister organization to ADF, The Orchard Foundation. Joseph Padilla has served at Orchard for 12 years and is currently the vice president for Development and Ministry Services. During that timeframe, ADF has worked alongside Orchard, and I have been privileged to see the ministry grow firsthand. It is exciting to see they have 38 ministry partners, including The Christian and Missionary Alliance.

Estate Planning Is For Everyone

By Joseph Padilla, The Orchard Foundation

Estate Planning is one of those things you know you need to do, but unfortunately it often gets pushed down your to-do list because the issues just seem too daunting. The good news is that it doesn’t have to be intimidating at all.

The expression “the only things certain in life are death and taxes” has been verbalized for many years. These certainties are a fundamental part of life and a person should not shy away from these tough issues simply because they appear difficult. The first and best way to plan for these certainties is by creating an estate plan.

An estate plan is simply a set of documents that helps you plan for events during your lifetime as well as at death. The phrase “estate plan” sounds like complicated legal material that only very wealthy people need, but in fact it refers to the documents that almost everyone needs, whether your financial and family affairs are simple or complex.

The Orchard Foundation is a stewardship ministry that has been serving the charitable giving and estate planning needs of our Alliance family for nearly 50 years. Orchard offers a wide range of gift planning solutions to individuals and families who desire to make the most of God-given resources to meet personal, family and charitable objectives.

We bring the right blend of biblical and professional expertise to help Christians develop the best plan of stewardship when making non-cash gifts to their church or other ministries. To help facilitate these gifts, Orchard provides charitable giving services, such as administration of charitable trusts, gift annuities, donor advised funds, and endowment funds. We also help locate a local attorney in your state to assist with the drafting of a will, power of attorney, health care proxy, and much more.

With many combined years of industry experience, our knowledgeable staff provides customized service to all those looking for a unique blend of planned giving tools as well as quality asset management.

For more information, contact the Orchard Foundation toll free at 833-672-4255 or email us at service@orchardalliance.org.

 
Rob Pease