Weekly e-News Friday, December 23, 2016

Looking Ahead

            Worship and Youth Sunday School at 10:00 a.m. and Children’s Christmas Program; 1:00 p.m. Worship in Nepali.

            Bible Studies: Tuesday at 9:30 a.m. and Wednesday at 1:00 p.m.

Monday, January 2 Session meets at 6:30 p.m.

Would you like to sponsor a tree for $20? The cost of the electrical connections for the year is 9 X $20 with three yet available.

Installation of officers elected in November will be on the first Sunday of January, New Years Day.

             

            A special treat next Sunday, January 1, will be Michaela Ausland Peters bringing us an interpretive dance as she is home from her studies at the University of Minnesota at Mankato.

The Sermon Sunday will be “Offer Up Your Praise” from Micah 5:2-5a (And he shall be their peace.); and Luke 2:1-20- The birth of Jesus.

 “And the angel said to them, ‘Fear not, for behold, I bring you good news of great joy that will be for all the people.’” Luke 2:10.

Around Church this Week:

            We had a special treat in worship on Sunday when Michaela Ausland Peters shared an interpretive dance. I posted the video at https://youtu.be/BkJ6U1luQbQ , but the music “Mary Did You Know” is copywrited, so you can’t hear it while you watch, unless you open a separate tab and play it there while you watch at the link above. Those who missed her will have another opportunity on January 1.

TheChildren’s Christmas program was postponed to January 1.          

            Thank you to Gary Van Regenmorter changed the burned out light bulb in the parking lot.

Session met Monday evening.

We received a thank you from Community Outreach for our gift from the Thanksgiving eve offering plus 25% of the Peacemaking offering. For every $25 donated = a month’s transportation for a newly employed. $150 = utilities to keep a home warm.

Calendars are available on the table in the sanctuary for $7.00 to support our Youth ministries.

Chuckle:  “The One whose throne is in heaven sits laughing. . . .” (Psalms 2:4)

No one can fracture a Christmas carol better than a kid.  Sing along with these new takes on old favorites:

* Deck the Halls with Buddy Holly
* We three kings of porridge and tar
* On the first day of Christmas my tulip gave to me
* Later on we’ll perspire, as we dream by the fire.
* He’s makin’ a list, chicken and rice.
* Noel, noel, noel, noel; Barney’s the king of Israel.
* With the jelly toast proclaim
* Olive, the other reindeer.
* Frosty the Snowman is a ferret elf, I say
* Sleep in heavenly peas
* In the meadow we can build a snowman, Then pretend that he is sparse and brown
* You’ll go down in listerine
* Oh, what fun it is to ride with one horse, soap and hay
* Come, froggy faithful
* You’ll tell Carol, “Be a skunk, I require”
* Good tidings we bring to you and your kid

Birthdays this Week:

31 Edith St. Clair

Anniversary this Week:

23 Wendell & Carol Pribyl
26 Pastor Dave & Judy Ullom

 

Prayer Thought:   “Prayer is the slender nerve that moves the omnipotent muscle of God.”  ~ Charles Spurgeon.

The more you get in the habit of praying, the more you will accomplish through prayer and the happier you’ll be, because you will have learned the secret of staying in constant, close communication with your loving Savior and friend.

 

Please keep in prayer: Elvena Hyronimus, Jayden Ausland, Betty Peters, Jeanne Marsh, Jeff Lewis, Rose Thuringer, Esther Bakker; Ardella Kjergaard; Don Crichton; Cami Kuchta;. Candace Roelfsema-Stansbury.

 

If you have a year-end tax advantage to giving to our church, now would be a great time to do so as we are in great need of gifts. Giving because you have a heart for our church and the ministry here is the best reason, but it might just be that there are wise financial reasons for giving. If you are over 70 and a half, you have a very good personal reason for your own tax picture to make a direct distribution from an IRA to reduce your tax payments and give to the church at the same time. Here is some explanation:

In year-end legislation, the Consolidated Appropriations Act of 2016 finally made permanent qualified charitable distributions (QCDs) from individual retirement accounts.Some IRA owners  made QCDs earlier this year, anticipating QCDs made on or after Jan. 1, 2015 would be recognized for federal income tax purposes.  That bet turned out to be a winner.

Because QCDs are finally permanent, now’s a good time to review the rules.

Benefits of QCDs

A QCD permits annual direct transfers to a qualified charity totaling up to $100,000 of tax-deferred IRA savings. Funds that have been distributed from the IRA to the IRA owner and are then contributed to charity can’t so qualify. QCDs offer advantages over taking a taxable IRA distribution and then contributing the proceeds of that distribution to a charity. That’s because taxable IRA distributions must be included in adjusted gross income. As a result:

  • Income taxes on Social Security benefits can increase,
  • Adjusted gross income (AGI) limitations on annual charitable deductions can defeat current deduction of the charitable contribution of IRA distribution proceeds (carryovers to a limited number of future tax years is available),
  • AGI limitations trimming itemized deductions can apply, and
  • Medicare insurance premiums can increase.

QCDs avoid those results.

Importantly, QCDs automatically satisfy required minimum distributions (RMDs) for the year when the QCD is made. That’s a real advantage for a charitably minded IRA owner who doesn’t need RMDs to live on.

Requirements

Only individuals who’ve attained age 70 ½ may make QCDs. For example, virtuoso violinist and conductor Itzhak Perlman attains age 70 ½ on Feb. 6, 2016. A direct transfer from his IRA to the New York Philharmonic before Feb. 6, 2016 wouldn’t have harmonized with QCD requirements.

The charitable donee must be an organization that qualifies for a charitable income tax deduction of an individual, other than a private (grant-making) foundation, a donor-advised fund or a supporting organization under Internal Revenue Section Section 509(a)(3).

The charity that receives the donation must provide the same contribution acknowledgment needed to claim a charitable income tax deduction. Failure to obtain the acknowledgment will quash the QCD.

QCDs may be made from any IRA or individual retirement annuity, but not from a simplified employee pension, a simple retirement account or  an inherited IRA.

Making The Contribution

To make a contribution, contact the intended charity to determine the exact payee name for the check. Then, using that name, instruct your IRA trustee or custodian to make a transfer from the IRA directly to charity. Many trustees and custodians already have forms and procedures in place to make this transfer. It won’t qualify if the trustee or custodian makes the mistake of putting IRA money in a non-IRA account of yours as an intermediate step. It won’t qualify if the check is made out to you. The law doesn’t provide a way to correct mistakes. The Internal Revenue Service has said that a check from an IRA may be made payable to a charitable organization described in section 408(d)(8) and delivered by the IRA owner to the charitable organization.2

Be sure to obtain a letter of acknowledgment from the charity.

More Than One IRA

Let’s say Maestro Perlman has two IRAs: IRA A and IRA B-flat. Each IRA is worth $100,000. Each IRA holds $80,000 of pre-tax funds that will be taxable upon distribution and after-tax funds, or basis, of $20,000. Perlman causes all of IRA A to be transferred to the New York Philharmonic. Is IRA B-flat affected in any way?  It turns out that it is.

Perlman is treated as having made an $80,000 QCD from IRA A, plus a $20,000 QCD from IRA B-flat. After the contributions have been made, IRA A is closed. IRA B-flat still holds $100,000, but Perlman’s basis in that IRA is now $40,000 instead of $20,000. That saved Perlman the trouble and risk of having to carefully contribute $80,000 from IRA A and contribute $20,000 from IRA B-flat.

Here’s why. A QCD can only consist of deferred taxable income residing in an IRA. Because the goal is to avoid income recognition resulting from an IRA distribution, there’s no need to confer QCD status on what would otherwise constitute a tax-free IRA distribution. Fortunately, the QCD rules provide that Perlman’s IRAs are aggregated to determine how much deferred taxable income is treated as passing to charity.3 The amount of the transfer is deemed to consist of deferred taxable income, potentially from all IRAs. But, helpfully, there’s an ordering rule. The QCD comes first from the contributing IRA (in this case, IRA A), then from any other IRAs (in this case, IRA B-flat). Only after the charitable transfer exceeds the sum of deferred income in both IRAs is there a transfer of funds having income tax basis.

Unfortunately, IRS Publication 590-B doesn’t discuss the multiple IRA rule.

Cash vs. Property

Because the tax code always deems only deferred taxable income to have been distributed in a QCD, it won’t matter whether cash or property is transferred to the charitable donee, as long as there’s at least as much pre-tax value to cover the contribution. For example, securities held in an IRA can be transferred from an IRA to a charity. The value of the securities will be treated as first carrying out deferred taxable income, up the value of the securities. The IRA’s basis in the securities won’t matter.

                                                                               

Eternally Blessed,    

Pastor Dave Ullom <*}}}<  

Leave a Reply

Your email address will not be published. Required fields are marked *