Scott Thomas, ChFC®, CAP®, CKA®, RICP®

What is Charitable Silo and How It Benefits You?

“Charitable Silo” May Be Perfectly Suited For Your Giving

 

The Charitable Silo is designed for the generous individual that has reached the age 70 ½ and now facing Required Minimum Distributions from large Individual Retirement Account. This is not a donor advised fund.

Maybe you have heard of Qualified Charitable Distributions from IRA and the advantages of tax neutral and meet the needs of RMD or required minimum distribution from IRA.  The Charitable Silo is unique strategy where instead of gifting directly to the charity today the Silo can hold and earn money and payout as directed over time.  Also provides the option to give anonymously if one wanted to do so.  Option to schedule out payments over time as well.  The maximum amount in any calendar year is limited $100,000 of funding.

Some common reasons to consider the Silo strategy include:

            *Reduce the IRA value and future RMD distributions

            *Tax Neutral Distributions

            *Will Not increase Taxable Income and Penalties such as higher Medicare     

            Premium or limit the medical deductions due to higher income

            *Gifting over several years may align better with past giving and budget

            *Money not gifted out in Silo can continue to earn while waiting to distribute

            *Control over the timing: now or later or scheduled payouts

            *Option to give anonymously

            *If you don’t “Itemize” taxes then provides typically 15%-37% more

            *Complies with Qualified Charitable Distribution rules

 

To learn more reach out to me Scott Thomas of Stewardship Matters, Inc. 407-644-9411 or scott@stewardshipmatters.net

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