Page 9 - Jupiter West - December '23

Jupiter West, Page 9
Financial Focus ® Medicare Corner

Can You Make Charitable make an irrevocable charitable contribution and receive an
appreciated assets, such as stocks, your tax deduction would With Kathy O
immediate tax deduction. You can give cash, but if you donate
Giving Less “Taxing”?
be the fair market value of the assets, up to 30 percent of
By Sally Sima Stahl your adjusted gross income. Plus, you would not incur the It’s Time For Medicare Annual Enrollment
Once again, it’s the season capital gains tax that would otherwise be due upon the sale Period (AEP) Oct. 15 To Dec. 7
of generosity. In addition to of these assets. Once you establish a donor-advised fund, You May Still Have Time To Change Plans
considering gifts for your you have the flexibility to make charitable gifts over time, With A Special Enrollment Period – Call Me!
loved ones, you might want and you can contribute to the fund as often as you like.
to think about charitable gifts Another possible tax benefit from making charitable Is it time for hearing
as well. But what should you contributions could arrive when you start taking required aids? Need new glasses?
know before making gifts to minimum distributions, or RMDs, from some of your Traveling outside the
charities? And what impact retirement accounts, such as your traditional IRA and U.S.? Need dental
might these gifts have on your 401(k). These RMDs could be sizable – and distributions cleanings or more?
financial and tax situation? are counted as taxable income. But by taking what’s Original Medicare
First, you may want to called a qualified charitable distribution (QCD), you can does not include coverage
create a gift budget by deciding just how much you will give move money from a traditional or Roth IRA to a qualified for these potentially high-
to charitable organizations over the rest of the year. charitable organization, possibly satisfying your RMD, cost health care expenses.
Next, look closely at the groups to whom you wish to which then may be excluded from your taxable income. You Medicare Advantage
contribute. You can find many reputable charities, but some must start taking RMDs at 73 but you can begin making plans may fill in the
others may be less worthy of your support. One of the red QCDs of up to $100,000 per year as early as age 70½. (This gaps for items original
flags of a questionable organization is the amount of money amount will be indexed for inflation after 2023.) Medicare does not cover.
it spends on administrative costs versus the amount that goes Establishing a donor-advised fund and making qualified Think about your healthcare needs when you read
to its stated purpose. You can check on the spending patterns charitable distributions are significant moves, so you’ll this surprising list of other common services that are not
of charitable groups, and find other valuable information need to consult with your tax advisor first. But if they’re included in original Medicare.
about them, on the well-regarded Charity Navigator website appropriate for your situation, they may help you expand What Medicare Does Not Cover
(charitynavigator.org). your ability to support the charitable groups whose work Health care costs that are not covered include, but are
Once you’ve established a gift budget and are comfortable you admire. not limited to:
with the groups you choose to support, you might turn your This article was written by Edward Jones for use by • Acupuncture
thoughts to another key issue connected with charitable your local Edward Jones Financial Advisor, Edward Jones, • Ambulance services (except in emergencies or when
giving: tax benefits. A few years ago, changes in the tax Member SIPC. the individual’s health would be in danger if other
laws resulted in a large increase in the standard deduction, Edward Jones is a licensed insurance producer in transportation was used)
which meant that many taxpayers found it more favorable all states and Washington, D.C., through Edward D. • Chiropractic services, except for some limitations
not to itemize – and lost the ability to take charitable Jones & Co., L.P., and in California, New Mexico and • Dental care and dentures (with only a few exceptions)
deductions. But if you still do itemize, your charitable gifts Massachusetts through Edward Jones Insurance Agency • Cosmetic surgery
or contributions to tax-exempt groups – those that qualify of California, L.L.C.; Edward Jones Insurance Agency of • Custodial care (help with bathing, dressing, using the
as 501(c)(3) organizations – can generally be deducted, up New Mexico, L.L.C.; and Edward Jones Insurance Agency bathroom, and eating) at home or in a nursing home
to 60 percent of your adjusted gross income, although lower of Massachusetts, L.L.C. • Health care while traveling outside of the United States
limits may apply, depending on the nature of your gift and Edward Jones, its employees and financial advisors (except in limited cases)
the organization to which you’re contributing. cannot provide tax advice. You should consult your qualified • Eye care – routine exams, eye refractions, and most
Other, more long-term avenues also exist that combine tax advisor regarding your situation. eyeglasses
charitable giving with potential tax benefits. One such Contact us at (561) 748-7600, Sally Sima Stahl, AAMS, • Hearing aids, hearing exams, and hearing tests that
possibility is a donor-advised fund, which allows you to 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458. haven’t been ordered by a doctor
• Long-term care, such as that delivered in most nursing
homes (custodial care)
• Orthopedic shoes (with only a few exceptions)
• Outpatient prescription drugs (with only a few exceptions)
• Routine foot care (with only a few exceptions)
• Routine physical exams (beyond the annual wellness visits)
• Screening tests (with some exceptions)
• Shots (vaccinations—except those approved)
• Some diabetic supplies (like syringes or insulin unless
it is used with an external insulin pump)
• First three pints of blood
• Additional charges for a private hospital room
• Private nursing care
• Skilled nursing care costs beyond 100 days a year
• Meals delivered to the home
• Medical charges billed by relatives
• Personal comfort items
• Intermediate care
Medicare Advantage plans or supplements can fill in
the gaps that Medicare does not cover in most instances.
Call today for your free, no hassle consultation. I can
meet with you one on one or virtually. I am here to help
find the best plan for your needs today!
I speak Medicare: supplement, drug plan and
Advantage plan.
For your free Medicare plan review please call me.
Kathy Olejniczak, agent, (561) 835-5413 or cell/text
(561) 212-7640

Licensed and Insured