Accessibility Tools

Image
Image

News

Each year, traditional IRA owners aged 73 and older must take a required minimum distribution (RMD). In nearly all cases, the RMD is calculated using the Uniform Lifetime Table. Under the Uniform Lifetime Table, distributions generally commence at age 73 at approximately 3.8% and increase each year based on the age of the IRA owner. The RMD must be taken by December 31 each year.

Many traditional IRA owners with larger balances take their RMD during the months of October, November and December. Because many individuals with larger IRAs do not need IRA distributions throughout the year to pay for living expenses, they often delay an RMD until the end of the year. This allows the IRA balance to benefit from additional tax-free growth during the year.

Fortunately, the IRA charitable rollover will count towards the donor's RMD. Although RMDs are not required until age 73, the IRA charitable rollover can be used by any donor once they reach age 70½. The IRS term for an IRA charitable rollover is a qualified charitable distribution (QCD) which is also the term commonly used by IRA custodians.

There are five donor profiles for IRA charitable rollover gifts. The first are the convenience donors who find it a simple method for an end of year gift. The second is the generous donor who wants to give more than the 60% of adjusted gross income (AGI) deduction limit for cash gifts. The third is a major donor who may be a generous individual looking for a favorable opportunity to make a major gift. The fourth donor is the Social Security recipient looking to reduce taxes with an IRA charitable rollover gift. Finally, a donor who takes the standard deduction can also benefit from an IRA charitable rollover gift.

Convenience Donor

Many IRA owners wait until the final months of the year to take their IRA withdrawals. As the individual approaches the end of the year, he or she will need to make decisions related to their RMD. If an IRA owner is actively making gifts to charity during the year, then using a QCD is a good opportunity to make a gift.

Convenience donors may contact their IRA custodians to arrange for an IRA charitable rollover. There is no charitable income tax deduction, but also no inclusion in federal taxable income. It is a simple and convenient way to help their favorite charity.

Generous Donor

Some generous individuals already donate up to 60% of their AGI which is the maximum limit allowed by the IRS for deduction of cash gifts each year. Any gifts over this limit may be carried forward and deducted over the following five years. Some generous donors may also have a large IRA and live at a moderate expense level and may not need their entire IRA.

If there is a desire to give more, they can give up to 60% of adjusted gross income from their cash assets and make "over and above" gifts from an IRA. Some generous donors may in effect give nearly 100% of their income per year through this method. Since the IRA charitable rollover is not included in taxable income, it will have no impact on their regular income and other charitable gifts.

Major Donor

As the rules have continually become more favorable for IRAs and required withdrawals have been reduced, IRAs balances are likely to keep growing. There are occasional market dips, but the long-term trend is positive and IRAs will continue to increase in value.

For many professionals and business owners, the IRA may become most of the estate. In these cases, it may be desirable to do "asset balancing" to keep future RMDs at manageable levels. To accomplish this goal, the major donor can give up to the maximum QCD amount in 2025 of $108,000 from his or her IRA. This has the advantage of "balancing" the estate assets.

In addition, there may be income tax benefits. If the donor were to take the IRA distribution into his or her own personal income, there are several types of exemptions that are phased out at higher income levels. Thus, it may be preferable to make the gift directly from an IRA rather than making a charitable gift from regular income.

Social Security Donor

Social Security is subject to two levels of taxation. For donors who have income in excess of the first level, 50% of Social Security is taxed. For donors with income in excess of the second level, up to 85% of Social Security income may be subject to tax.

Withdrawing any amount from an IRA will potentially cause the amount of the donor’s social security benefits that are taxable to increase from 50% to 85%. Even if the withdrawn amount is given to charity and then deducted, there may still be increased tax on the donor’s income. Thus, by making the transfer directly to charity, many Social Security recipients will save income taxes.

Standard Deduction Donor

Many seniors do not have a mortgage and have medical deductions that are less than 7.5% of AGI. Thus, they may not have a sufficient level of deductions to itemize and choose instead to use the standard deduction.

If a donor withdraws $1,000 from his or her IRA and then gives it to charity, there is $1,000 of increased income with no offsetting charitable deduction, since the standard deduction is taken. Therefore, it may be preferable for all donors who take a standard deduction to make IRA charitable rollover gifts directly to charity and avoid the additional income tax on their RMD.

Published April 25, 2025

I plan to apply for my Social Security retirement benefits later this year. Where should I seek assistance?

The Social Security Administration (SSA) is currently undergoing significant staffing reductions. Reduced staffing will cause longer processing times and may make it more difficult to obtain in-person assistance. Here is how you can best navigate the SSA as it downsizes its workforce.

Use SSA.gov Website for Online Services

Most SSA requests and questions can be handled online. To get started, go to SSA.gov/onlineservices where you can create an online “my Social Security” account. This account allows you to view your latest statement and earnings history, apply for retirement, disability and Medicare benefits, check the status of an application or appeal, request a replacement Social Security card (in most areas) and print a benefit verification letter. The SSA’s website also has a wealth of information and includes answers to frequently asked questions that you can access at SSA.gov/faqs.

Phone Assistance

If you cannot conduct your Social Security business online or need extra help, you can receive assistance over the phone by calling your nearby field office (see SSA.gov/locator for contact information) or by calling the SSA national number at 800-772-1213 (TTY 800-325-0778) between 8:00 a.m. and 7:00 p.m. local time, Monday through Friday. When you call, there are many automated service options that you can use 24 hours a day without waiting. If you need to speak to a representative, waiting times are typically shorter early in the morning (between 8 a.m. and 10 a.m.) or later in the afternoon (between 4 p.m. and 7 p.m.). You may also experience shorter waiting times later in the week (Wednesday to Friday) and later in the month.

If you need to visit your nearby SSA office, it is best to call ahead and make an appointment as walk-ins often have much longer waiting times. To make an appointment call 800-772-1213 or contact your local SSA office.

Planning and Patience

When communicating with the SSA, it is important to be patient and prepare in advance. With the SSA staff reductions, delays and longer waiting times will be inevitable. If you are planning to start drawing your Social Security benefits soon, it is best to apply as early as possible. You can apply for benefits up to four months before you expect to receive benefits. Applying as early as possible can help ensure the benefits are available when needed.

Keep in mind that the SSA recently announced that new applicants who cannot properly verify their identity over the agency’s “my Social Security” online service will be required to visit an SSA field office in person to complete the verification process. The verification procedures could add additional time for those applying for benefits. This change will also apply to unverified existing recipients who want to change their direct deposit information.

If you have concerns regarding staffing reductions, you may reach out to your Congressional representatives to communicate the importance of safeguarding and prioritizing Social Security. To find your Congress members’ contact information, go to Congress.gov/members/find-your-member.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of “The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

Published May 2, 2025

What are the risk factors for kidney disease?

Individuals with diabetes, high blood pressure, heart problems or a family history of kidney disease have an increased risk for chronic kidney disease, a condition in which the kidneys lose their ability to effectively filter your blood.

According to the Centers for Disease Control and Prevention (CDC), around 37 million U.S adults have chronic kidney disease, and many more are at risk of developing it. Because kidney disease develops slowly before symptoms arise, many people are not aware they have the disease.

If left untreated, chronic kidney disease can eventually require dialysis or a kidney transplant. Even mild kidney problems increase the risk of heart attacks, strokes, anemia and bone disease.

Kidney disease has become widespread today due to the rise of obesity, type 2 diabetes and high blood pressure, all of which strain the kidneys. Another factor is the increasing number of people who take multiple medications, which can overtax the organs. People over the age of 60 are especially vulnerable because they tend to take more medications, and because kidney function naturally declines with age.

Get Screened

Because kidney disease is often symptomless, early stages of the disease usually go undiagnosed. The only way to detect it before it advances is through routine blood and urine tests. Anyone with diabetes, high blood pressure or heart disease, or over age 60 should be tested annually.

If your lab results indicate a decline in kidney function for more than three consecutive months, you may receive a diagnosis of kidney disease and be referred to a nephrologist. While kidney damage cannot be reversed, there are several effective lifestyle changes and treatments that can help prevent further damage.

Control your blood pressure: If you have high blood pressure, aim to keep it below 140/90. If you need medication, ACE inhibitors and ARBs are good choices because of their proven ability to protect kidney function.

Control your diabetes: If you have diabetes, maintain blood sugar levels as close to normal as possible. Diabetes medications such as SGLT-2 inhibitors have shown to be effective in helping slow the progression of kidney disease, even in non-diabetic patients.

Adjust your diet: This usually means reducing protein, phosphorus, sodium, sugar and potassium. Your doctor can help you determine an appropriate diet, or you may want to consult with a dietitian.

Watch your meds: Dozens of commonly used drugs can damage the kidneys, especially when taken in high doses over long periods. Notably non-steroidal anti-inflammatory drugs (NSAIDs), like ibuprofen and naproxen, proton pump inhibitors (PPI) used for heartburn and gastroesophageal reflux disease (GERD), and certain herbal supplements can also be problematic. Talk to your doctor about your prescriptions, over-the-counter and herbal products to identify potential problems and find alternatives.

Exercise and lose weight: If you are inactive, start an aerobic fitness routine (walk, swim, cycle, etc.) that gets your heart pumping. Regular physical activity can lower blood pressure, control diabetes and support weight loss, all of which benefit kidney health.

Stay hydrated: Dehydration can affect kidney function. Aim to drink at least 64 ounces of water per day.

Quit smoking: Smoking damages the kidneys and doubles the rate of progression to end-stage renal failure. If you smoke, consult with your healthcare professional to set up a plan to quit.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of “The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

 

Published March 21, 2025

During tax season, fraudsters use the latest strategies to steal identities. With the tax filing season in full swing, taxpayers need to remain vigilant for strategies that may involve text messages, emails, phone calls or potential unemployment fraud.

The Internal Revenue Service (IRS) notes, “With filing season underway, this is a prime period for identity thieves to hit people with realistic-looking emails and texts about their tax returns and refunds. Watching out for these common scams can keep people from becoming victims of identity theft and protect their sensitive personal information that can be used to file tax returns and steal refunds."

    1. Text Message Scams— There has been an uptick in text messages from senders that claim to represent the IRS. These fraudulent messages often include links to bogus websites that purport to be the IRS. The IRS emphasizes it does not use text messages other than the IRS Secure Access service. The IRS also will not send direct messages through social media platforms.

      If you receive a text message that claims to be from the IRS, you should take a screen shot and send it to This email address is being protected from spambots. You need JavaScript enabled to view it.. With the screenshot, include the date and time you received the text message and your phone number. You can take a screenshot on an iPhone by simultaneously pressing and releasing the side button and volume button. On other smartphone models, you may press at the same time the side button and home button or the top button and home button. The screenshot may then be accessed through your phone’s photos app and emailed to This email address is being protected from spambots. You need JavaScript enabled to view it..

    1. Unemployment Fraud— There is a surge in efforts by organized crime rings to steal identities and file fraudulent unemployment claims with state agencies. Your state office will then issue IRS Form 1099-G, Certain Government Payments to the recipient and the IRS. If you receive a fraudulent or inaccurate Form 1099-G, you should report it to the state agency and obtain a corrected Form 1099-G. For information on unemployment fraud and to report an incident, go to DOL.gov/fraud. If you receive any communication from a state agency about an unemployment claim that you did not file or a notice from your employer about an unemployment claim that is improper, you should also report it.

    1. Email Phishing Scams— The IRS emphasizes that it does not contact taxpayers through email to request personal or financial information. If you receive an unsolicited email, do not click on any links in the email. Send the email as an attachment to This email address is being protected from spambots. You need JavaScript enabled to view it.. The "Report Phishing and Online Scams" webpage at IRS.gov provides additional information.

  1. Phone Scams— The IRS notes it does not leave urgent or threatening messages on your phone or voicemail. Scammers will often threaten victims with arrest, deportation or revocation of a driver's license. It is possible to "spoof" caller ID numbers. The scammer may attempt to spoof the caller ID number of a sheriff's office, department of motor vehicles or federal agency. The IRS emphasizes it will never call and demand payment through a prepaid debit card, gift card or wire transfer. It will also not ask for a credit or debit card over the phone.

    If you receive a threatening call, hang up the phone. You can report the caller ID and callback number on This email address is being protected from spambots. You need JavaScript enabled to view it.. You also may report the call on FTC.gov and note "IRS Telephone Scam" on your report.

    If you owe tax or think you might have a tax bill due to the IRS, you should hang up the phone. You can create an online account on IRS.gov and review your information. There may be a phone number on a billing notice from the IRS or the general IRS number is 800-829-1040.

    If you are a victim of identity theft and a fraudster has used your Social Security number to file and claim a fraudulent refund, you may be contacted by the IRS. You should immediately respond to any IRS notice and call the listed number.

    You may file IRS Form 14039, Identity Theft Affidavit. If you are a victim of identity theft, you still must file and pay taxes. Many individuals use a paper form to pay their tax in this circumstance.

Editor's Note: IRS tax filing season always causes fraudsters to intensify their efforts. Taxpayers should be familiar with the principal ways scammers attempt to steal identities and file fraudulent returns.

 

Published March 21, 2025

FOLLOW US

vimeo logo

ADDRESS

Washington County
Community Foundation
Suite 100
1707 North Shelby Street
Salem, Indiana 47167

CONTACT

AccreditedCF Seal   Donate Now