Month: December 2020

Due to changes in the the tax code a few years ago, most taxpayers can no longer deduct charitable contributions. Making a Qualified Charitable Distribution (QCD) is a great way to make a charitable contribution and still get a tax benefit. A QCD is a direct transfer of funds from your IRA custodian to a qualified charity and counts toward satisfying your annual IRA required minimum distribution (RMD). IRA distributions are generally considered taxable income, but QCDs are excluded. RMDs were waived in 2020, but those over age 72 will be required to take them again in the coming year. Read more about QCDs by clicking the link below:

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Few budgetary concepts generate as much confusion as the Social Security trust fund. In 2021, working Americans will pay 6.2% of their wages up to $142,800 to the government and employers match that amount. The self-employed have to pay both amounts. This payroll tax is deposited into the Social Security Trust Fund and retiree benefits and administrative expenses are paid out of this fund. The following article is the best I've read explaining whether the federal government really raids the trust fund and whether Social Security will run out of money.

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