Use this handy, informative article to help your clients understand Qualified Charitable Distributions (QCDs).

As you build your legacy, considering how to leverage your charitable contributions can be a fulfilling endeavor. Qualified Charitable Distributions (QCDs) can offer an opportunity to support your favorite causes and manage your retirement income. Here are some factors to consider with QCDs and how they’ve changed based on recent legislation, such as the SECURE Act.

What Is a Qualified Charitable Distribution (QCD)?

A Qualified Charitable Distribution allows individuals aged 70½ or older to donate directly from specific retirement accounts to qualified charities without recognizing the distribution as taxable income. Such distributions can help you manage your required minimum distributions (RMDs), which are required starting at age 73.

Remember, this article is for informational purposes only and is not a replacement for real-life advice. We encourage you to consult with your tax, legal, and accounting professionals before modifying your retirement income strategy.1

Age and Account Requirements

You must be at least 70½ years old to qualify for a QCD. The distribution can be made from an IRA. You can use SEP IRAs or SIMPLE IRAs so long as they are inactive, meaning that you’ve made no contributions to the account in the year the QCD is taken. However, keep in mind that 401(k)s and other non-IRA retirement vehicles do not qualify for QCDs.

Once you reach age 73, you must begin taking RMDs from a traditional IRA, SEP IRA, or SIMPLE IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.

To qualify for the tax- and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.1

Limits and Adjustments

The maximum annual limit for QCDs is currently set at $108,000 for 2025, an amount that adjusts for inflation yearly. Therefore, staying updated on the annual cap is important, as it can influence your donation strategy.1

Financial Advantages

In addition to helping you support a charity, a QCD may also offer to help you manage your tax situation. IRA withdrawals are generally taxable, but QCDs are excluded from taxable income, meaning they don’t increase your adjusted gross income (AGI). For some, this may be an opportunity to consider when balancing supporting a charitable organization and managing taxes.

Additionally, QCDs enable you to satisfy your RMD requirements. You also benefit from the fact that you don’t need to itemize deductions to take advantage of a QCD, allowing you to use the standard deduction.1

Again, this article is for informational purposes only. Speak with your tax, legal, and accounting professionals if you have specific questions about your deductions.

Charity and RMD Considerations

QCDs are versatile in that there is no restriction on the number of charities you can support, provided they qualify under IRS guidelines. However, the donation must go directly from your IRA to the charity to be a QCD. Gifts made as QCDs can fulfill all or part of your annual RMD requirement. It’s worth noting that if you donate over your RMD amount, the excess cannot be rolled over to the next year’s RMD.

Final Key Details

It’s prudent to confirm the status of your chosen charity through the IRS Online Search Tool or by consulting with a professional who can speak to the tax status of the organization. If you withdraw and then donate the funds, it does not count as a QCD and becomes taxable.

As with most financial strategies, your state may have specific rules impacting how QCDs are treated. It’s vital to check with a tax professional about state-specific regulations.

1. IRS.gov, 2025
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Learn about the latest sport to sweep the nation with this informative article.

Staying Active in Retirement

Over the last couple of years doctors have made clear the benefits of regular physical activity, especially for older adults. In fact, adults 65 and older gain substantial health benefits from regular physical activity. Being physically active can increase mobility, lessen the chance of injury, and lead to an overall better quality of life.1

The benefits of exercise extend beyond the physical though. Regular exercise also lowers the risk of dementia and reduces the symptoms of anxiety and depression. Even knowing all the advantages associated with staying active, it can be tough to find an activity that’s fun, mentally challenging, and physically taxing.2

A Nation of Pickleballers

But if having fun, engaging in friendly competition, and burning calories sounds like your kind of exercise, pickleball may be the sport for you. With over 4.8 million people in the U.S. playing pickleball right now, this fast growing sport is quickly becoming the favorite of active retirees nationwide.3
Where did it come from?

In 1965, Congressman Joel Pritchard and his close friend Bill Bell invented the game as a means to give their families something to do on vacation. Using an old badminton court, they improvised a game using ping-pong paddles and a perforated plastic ball. Over the course of a couple weeks, their family and friends discovered that this strange new game was tons of fun!4

How do you play?

Pickleball is played either as doubles (two players per team) or singles, but doubles is most common. This doesn’t mean you have to bring a partner though. Many leagues and communities have members that are more than happy to play with new teammates.

A standard pickleball play area is the same size as a doubles badminton court and measures 20×44 feet with the net set at tennis court height. There are a number of easy to grasp rules, but the biggest difference between pickleball and tennis is the “serve” and the “kitchen.”

In pickleball, the serve is made underhand and paddle contact with the ball must be below waist level. Much like tennis, the serve is made diagonally crosscourt and must land within the confines of the opposite diagonal court.5

“The kitchen” is a colloquial term for the non-volley zone. This is a 3.5-foot wide section of the court closest to the net and extends to each sideline. It’s not uncommon to hear yells of “Kitchen!” followed by roars of “Ohhhh!” or bellows of laughter during a game. Even seasoned players can find themselves celebrating a great volley, only to realize they’re standing squarely in “the kitchen” where volley’s are a big no-no.

Fun for Everyone

Because pickleball rules are so similar to ping-pong, the barrier to entry can be quite low. Grandparents, grandchildren, and anyone in between can pick up this fun game with little frustration. So next time you’re looking for something to break up the monotony of your normal exercise routine, why don’t you give pickleball a try? Whether you’re a beginner who just wants to learn a new sport for fun, or a seasoned athlete who craves the thrill of competitive play, pickleball offers something for everyone.

1. CDC.gov, 2022
2. CDC.gov, 2022
3. USAPickleBall.org, 2022
4. USAPickleBall.org, 2022
5. USAPickleBall.org, 2022
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Intellectual property ownership and its implications for ordinary people and estates.

In 2023, the music industry witnessed a groundbreaking shift, as iconic bands like ABBA, KISS, and the Beatles embraced the digital frontier. These legendary acts showcased new digitally created content, with ABBA and KISS debuting live shows featuring their digital avatars. While this development opens up exciting possibilities for entertainment, it also raises questions about intellectual property (IP) ownership and its implications for ordinary people and their estates.

The Beatles’ so-called “final release” was a single called “Now and Then” based on a demo cassette created by John Lennon, who was tragically slain in 1980. While most of us won’t have a posthumous hit single, it’s not rare for deceased authors to have their unpublished—or even unfinished—novels see success in print and film. Famous examples include The Girl with the Dragon Tattoo by Stieg Larsson and Dragon Bones by Michael Crichton. Retired athletes have played again (at least in video games), and aging or passed actors have appeared as their younger selves in films. Another scenario might be for those who hold a patent that didn’t go into mass production during their lifetime, only to become incredibly profitable later. Here’s the big takeaway: Your IP might be more valuable than you realize, so consider consulting a legal professional who can offer guidance.

With the advent of digital avatars, the concept of retirement for musicians has taken on a new meaning. KISS, known for their theatrical performances and larger-than-life personas, surprised the world with their transformation into a digital-only band. After their final live performance, KISS unveiled their digital avatars designed to continue performing concerts indefinitely. Utilizing motion capture technology, the rock icons created a “superhero version” of the band, ready to rock for eternity. The “new KISS era” promises never-ending concerts, with the digital avatars capable of performing simultaneously in multiple cities, ensuring that the band’s brand as entertainment endures long after its original members have departed.1

ABBA, another legendary band, has embraced the digital revolution with avatars. Collaborating with the same creative minds behind KISS’ digital transformation, ABBA’s avatars have captivated audiences with their live shows. As the popularity of digitally created content grows, it is conceivable that ABBA’s and KISS’ avatars may eventually compete for concert space, further blurring the line between reality and virtual performances. Artists once relied on their physical presence and performances to generate revenue. The advent of digital clones now introduces the possibility of perpetual income streams from virtual performances. Artists and creators may need to adapt their strategies to embrace this new reality, exploring avenues for licensing, merchandising, and virtual experiences.

The concept of an artist’s estate may undergo significant changes in the digital era. With the potential for avatars to continue generating revenue long after an artist’s passing, careful estate preparation becomes crucial. Artists and creators must consider how their IP and the resulting royalties are scheduled to be managed and protected, helping to structure their legacy so that the financial benefits it generates remain preserved for future generations. There are limitations; your legal strategy should have contingencies for unintentional patent or copyright infringement, both during your lifetime and beyond.

How might you consider the future of your creative work, patents, likeness, and other IP? Could these be important factors in your retirement strategy and beyond? While these advancements present exciting opportunities, they also require careful consideration of ownership, management, and estate strategy. You must also consider potential risks, including infringement on the IP of others. As this chapter of the digital revolution unfolds, individuals and industries must navigate this new landscape to ensure a sustainable and prosperous future for creators and audiences alike.

1. Apnews.com, December 2, 2023
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

This short, informative article teaches the basics of the FIRE movement.

If the idea of retiring in your early 50s, 40s, 30s, or even late 20s appeals to you, you may be interested in joining the FIRE retirement movement. Designed for those who have the discipline and cash flow to save diligently, FIRE can be an effective path toward living a work-optional lifestyle. In this article, we will discuss what FIRE is and whether or not it may be right for you.

What is FIRE?

FIRE stands for “Financial Independence, Retire Early.” This program, inspired by Vicki Robin’s book “Your Money or Your Life,” is built on the premise of saving more money month-to-month than traditional retirement approaches and utilizing low-fee investment choices to be able to afford retirement earlier than the traditional age.1

The “financial independence” portion of FIRE is considered to be about 25 times your yearly expenses. For example, if you decided you’d need $50,000 a year to live off of in retirement, you would need to save 50,000 x 25, or $1.25 million to be considered financially independent. Once that number has been met, you’d be able to retire and enjoy a life of financial freedom, withdrawing about three or four percent from your nest egg each year.

Top Considerations Before Joining the FIRE Movement

Retiring in your 30s may sound too good to be true. In fact, the whole FIRE movement and premise of retiring early can sound like more of a daydream than reality. And for some, it may be just that. But for others who are able or willing to embrace the lifestyle, financial independence early in life can be possible. Here are a few important considerations to make before deciding if the FIRE program may be right for you.

Consideration #1: You’ll Need to Spend Wisely

The big factors of the FIRE program are income, expenses, and time. The idea being, the bigger the gap between income and expenses, the less time it will take you to reach financial independence. And while it may sound extreme, depending on your timeline and desired income level in retirement, you could be looking to save more than half of your income to put toward early retirement. This is something that would need to be calculated individually, as it is based on your income level and current expenses.

However, living a frugal lifestyle now is almost always a universal requirement of the FIRE program and other early retirement seekers.

Consideration #2: FIRE Followers Don’t Embrace Traditional Retirement

For those looking to retire early using the FIRE method, “retirement” doesn’t mean sitting around and doing nothing. FIRE followers are typically more focused on the first part of the acronym, “financial independence,” than they are on retiring early. That means that they’re likely to still work in retirement or pursue a passion project they were previously unable to due to the confines of a full-time job.

Consideration #3: You’ll Want a “Why”

Like many financial goals, it can be hard to find the motivation to skip dinners out or splurging on a new outfit. When you have a nondescript idea of retiring early, there’s little motivation to skip out on some enjoyment today for the possibility of an early retirement a decade down the line. Instead, those who have embraced the FIRE method often put a “why” to their savings programs, and it’s important to get as specific as possible. Define your “why” and let it guide you in making positive progress toward your financial independence.

The FIRE program is an appealing method of reaching retirement early on in life and allows for its followers to find the flexibility in doing what they love. It does, however, take self-discipline and the ability to spend less today in order to save for tomorrow. If you’re considering the FIRE method, it may be wise to work with a financial professional who can help you understand your current spending habits and what you’ll need in order to find financial independence for an early retirement.

1. Vickirobin.com, 2023
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Learn the advantages of a Net Unrealized Appreciation strategy with this helpful article.

Employer-issued stocks can be one attractive benefit an employer can offer. But while it has its benefits, it’s natural to wonder what happens if you leave that job.

That’s where net unrealized appreciation (NUA) strategies can sometimes be helpful. An understanding of NUA strategies can help you determine what to do with those company stocks to potentially manage your tax bill.

Remember, this article is for informational purposes only and is not a replacement for real-life advice. Make sure to consult your tax professional before modifying your approach with any unrealized appreciation issues.

Once your tax professional has provided guidance, your financial professional can offer insights regarding your overall asset allocation if you decide to realize any gains. Asset allocation is an approach to help manage investment risk. Asset allocation does not guarantee against investment loss.

What is Net Unrealized Appreciation (NUA)?

NUA is the difference between how much you paid or contributed to your company stock and its current market value. For example, if you were issued employer stock at $20 per share and it is now worth $50 per share, you would have an NUA of $30 per share ($50 – $20 = $30).

What are the NUA Rules?

Your NUA may be taxed differently than other payments. If the lump-sum distribution includes employer securities, the NUA may not be subject to tax until you sell the securities.1

With this in mind, a participant may be able to transfer company stock from their previous plan into a taxable investment account without treating the entire amount as ordinary income. But before exploring any choice in detail, seek the guidance of a tax professional while keeping your financial professional apprised of your decisions.

1.IRS.gov, January 23, 2023
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

See how starting early—not saving more—can be the most powerful move you make for your long-term future.

In 1964, The Rolling Stones released the hit single, “Time Is on My Side.” Who knew they were talking about personal finance? What does it mean to put time on your side? To The Rolling Stones, it was a song about confidence and patience with love. To investors, it’s about confidence and patience when investing for long-term goals, such as retirement.

As a young investor, you have a powerful ally on your side: time. The earlier you start saving, the more opportunity your investments have to increase in value.

The power of compounding. Many people underestimate it, so it is worth illustrating. Let’s take a look at the long-term performance of an investment account using a hypothetical 5 percent rate of return.

How does it work?

A simplified example goes like this: If you were to start with a $1,000 principal in an account that earns 5 percent interest per year, and contribute $1,000 a year to the account, you would end up with $69,671 after thirty years, with $16,511 earned in compound interest from $30,000 in contributions. That compounding continues, even if you stop making deposits.1

The 30-Year Snowball Effect
$1,000/year · 5% annual return · No starting balance

The Power of Starting Early: Let Time Do the Heavy Lifting

When it comes to building wealth, most people focus on how much they can save and the kinds of returns they can earn. While those are important, there is a third factor that is often much more powerful: Time.

The math of compound interest rewards those who start early, even if they save less in total than someone who starts later. To illustrate this, let’s look at two hypothetical investors:1

The Early Starter

Contributes $10,000 a year for just 10 years, then stops entirely.
TOTAL CONTRIBUTED $100,000
ENDING BALANCE $850,608

The Late Starter

Waits 10 years, then contributes $10,000 a year for 30 years straight.
TOTAL CONTRIBUTED $300,000
ENDING BALANCE $888,298

Investor Balance Over Time
Hypothetical 6% annual rate of return

The visualization above highlights a startling reality of the financial world: effort does not always equal results. Investor 1 put in a total of $100,000 over a single decade and then let the market do the rest. Meanwhile, Investor 2 contributed $300,000—three times as much capital—over 30 years.

As you can see from the trajectories, Investor 2 spends their entire career playing “catch-up.” Even though their total balance eventually edges out Investor 1 by a small margin at age 62 ($888,298 vs $850,608), the “efficiency” of their money is far lower. Investor 1 essentially bought themselves a 30-year head start, proving that in the world of compounding, a small amount of money plus a long time is often superior to a large amount of money plus a short time.

1 This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of investments.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
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