The Fidelis Monthly Newsletter – Built With You in Mind
We know life moves fast, and financial decisions matter. That’s why we’re bringing you a monthly roundup of practical advice, market insights, reminders, and maybe just a bit of Fidelis fun to help you stay on track. We’re glad you’re here!
A Message from Fidelis Wealth Advisors
This time of year often prompts us to consider the blessings and abundance we have in our lives and how we can share them with others. And for many of us, the desire to give back to our communities and the world is what gives our lives a greater sense of purpose. With the right kind of direction, this impulse can form the foundation of a lifelong mission — and be passed along to other family members, potentially becoming an enduring legacy. It’s a journey you can embark on at any stage of life. But at the stage of retirement, you’re in a position to prioritize your own philanthropic efforts, as well as helping guide the next generation in theirs.
This month, we hope to help you recognize and maximize the power of your charitable giving as a way to create constructive change. We will highlight the federal requirements specific to retirees and offer information on efficient ways to give charitably – both in this season and throughout the year – that will not only help make a positive community impact but also avoid those pesky IRS penalties.
Required Minimum Distributions for Retirees
Every year the beginning of October marks the time when the Fidelis team comes together to process Required Minimum Distributions (RMDs) for our clients. While it might not sound glamorous, this kind of proactive planning keeps our clients on track. So, let’s break down what RMDs are and why they matter…
What are RMDs? Once you hit a certain age (currently 73), the IRS says “okay, time to start taking money out of those retirement accounts and paying us taxes on it.” That required withdrawal? That’s your RMD.
Why do RMDs exist? Because Uncle Sam has been patiently waiting for his cut of your pre-tax retirement savings, and he’s done waiting.
What do I need to know about RMDs? The amount is based on your account balance and your age. If you passed the RMD age requirement, you will likely see a 25% penalty on what you should have withdrawn. You can take it all at once or spread it throughout the year. It counts as taxable income, so plan accordingly.
Why does Fidelis care about RMDs? Because staying on top of these for our clients means nobody gets surprised by penalties, tax bills, or “wait, I was supposed to do WHAT?” moments in December.
Qualified Charitable Distributions for Retirees
So, you know more about RMDs…now what? Since the topic is charitable giving, let’s explore how you can use your RMDs to make QCDs, or Qualified Charitable Distributions. And as we quickly approach another tax season, how you can save on your 2025 taxes with QCDs.
In order to be qualified for QCDs, you must be over the age of 70½ with an eligible IRA account. One of our area nonprofits, Happy Dog Ranch, explains the process in THIS VIDEO, which is summarized below.
How QCDs Work
- Choose your cause. Decide on the charity/nonprofit you want to support.
- Transfer the money. Arrange the money transfer to the nonprofit.
- Report it. Don’t forget to include the QCD on your tax return.
The Key Benefits of QCDs
- Tax-free income. The money is excluded from your taxable income, which can lower your tax bill.
- It meets your RMD. A QCD can count toward your RMD (see above).
- Good for non-itemizers. QCDs can be beneficial even if you don’t itemize deductions.
Some Important Considerations
- Direct transfer is key. The IRA custodian MUST make the check payable directly to the charity/nonprofit.
- There is an annual limit. The maximum annual amount for a QCD is $108,000 per person in the year 2025.
Donor Advised Funds for Everyone
Another tool in the toolbox that is a flexible and effective way to support the causes you care about is establishing a donor advised fund (DAF). Individuals, families, and businesses can establish a DAF, which is essentially a charitable investment account for the sole purpose of supporting nonprofits you care about. When you contribute cash, securities, or other assets to a DAF at a public charity, you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth, and you can recommend donations to any eligible IRS-qualified public charity.
Here’s how a DAF works:
- Make a tax-deductible donation. Establish a Giving Account and then donate cash, stocks, or non-publicly traded assets such as private business interests, cryptocurrency, and private company stock to be eligible for an immediate tax deduction.
- Grow your donation, tax-free. While you’re deciding which charities to support, your donation can potentially grow, making available even more money for charitable giving.
- Support causes you care about, now or over time. You advise your IRA custodian on granting the money to your favorite charities at a pace that is comfortable for you.
You want your charitable donations to be as effective as possible when you give. DAFs are the fastest-growing charitable giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give charitably. With our custodial partners (Fidelity and Charles Schwab), Fidelis facilitates the creation and maintenance of DAFs for clients.
Fidelis and Charitable Giving
As you may be aware, this time of year is the Colorado Gives Day (CGD) campaign season, which officially kicked off November 1. Because Fidelis Wealth Advisors values giving back and supporting our community, we have committed to being a matching donor for The Aspen Effect’s 2025 CGD campaign – Breathe, Heal, and Rise.
Here are the details:
The cause we are supporting. The Aspen Effect is a nonprofit with a mission to strengthen youth and family resilience to help prevent a crisis in mental health and substance use by combining a unique animal environment with caring mentors and a strength-based approach.
Our commitment… is to match every dollar donated to The Aspen Effect during the CGD campaign, up to $10,000, to help it continue offering critical services to our community and build a brighter future by investing in our youth as they launch into adulthood.
Our ask of you. If you are able, please join us in supporting this effort HERE.
We hope the impact of Fidelis’ community involvement and charitable giving extends far beyond the immediate recipients of the donations.
What’s Your Giving Plan?
Throughout the many past “giving seasons,” we have witnessed our clients finding innovative ways to contribute to the community. Whether through monetary donations or in-kind gifts, every act of generosity has played a role in shaping a brighter future for those in need. The positive feelings that come with philanthropy and charitable giving, along with the additional benefit of tax savings that Fidelis clients receive, demonstrates that is not only possible but also highly rewarding.
If you’re approaching RMD age or already there – or if you’re curious about how you can combine your financial success with a commitment to positive community impact – let’s discuss and create your giving plan together.
For more information and to schedule your complimentary session, contact us at (303) 800-4683 or loyalty@fidelis-wealth.com.
Questions? Book a quick call with our team HERE.
