Welcome to the EPAC Corner! We are pleased to bring you this content from the Estate Planning Advisory Committee (EPAC) of the DeKalb County Community Foundation. If you have any questions about the information below or the EPAC group, please contact Community Foundation Executive Director Dan Templin at 815-748-5383 or dan@dekalbccf.org. 

Charitable Giving in a Challenging Economy

At the moment, economic conditions feel, well, awful. When it comes to required minimum distributions, however, the IRS does not care that your portfolio has suffered this year. If you reached age 72 in 2022 or sooner, you are required to take a distribution from your tax-deferred retirement accounts. The amount of the distribution is based on the value of the accounts as of December 31, 2021. This valuation date preceded the decline in the stock market.

While there is no way to avoid the required minimum distribution or to lower the distribution amount because of the change in value to your portfolio, you can avoid the tax consequence from taking the distribution by establishing a Qualified Charitable Distribution.

If you have reached the age of 70 1/2, you may be eligible to make annual distributions of up to $100,000 per person from IRAs directly to most Funds at the DeKalb County Community Foundation or other qualifying public charity. QCD transfers count toward satisfying your required minimum distributions and avoid the income tax on those dollars.

– Matthew L. Brown, local attorney and member of the DeKalb County Estate Planning Advisory Committee

Established in 2020, the DeKalb County Estate Planning Advisory Committee (EPAC) is comprised of local professionals providing estate planning services, including Attorneys, Trust Officers, CPAs, Wealth Advisors, and Insurance Agents. The purpose of the EPAC is to raise awareness and understanding of the Community Foundation as a resource for professional advisors and their clients, assist with efforts to deliver effective estate planning education to the general public, and to notify estate planning professionals on topics relevant to the intersection of estate planning and philanthropy.

Matthew L. Brown