Qualified charitable distributions (QCDs)

Did you know you can choose to give up to $111,000 to a qualified charity from your IRA (other than an ongoing SEP or SIMPLE IRA) without counting it as taxable income when you are over 70½ years old? This type of gift is called a qualified charitable distribution (QCD).

A QCD will count towards your required minimum distribution (RMD). However, you can’t claim a charitable contribution deduction for any QCD not included in your income.

Our financial advisors can help you calculate how much you may want to rollover to a Traditional IRA that will generate a QCD equal to the amount you intend to gift each year. You will still have an RMD from your 403(b), because 403(b) plans are ineligible to deliver QCDs.

P.S. Would you consider using all or part of your QCD to give to WEA Member Benefits Foundation to support student mental health in our Wisconsin public schools? The Foundation’s statewide initiative focuses on enhancing access to mental health services within schools and expanding partnerships with local philanthropic funders and community mental health agencies.

Your year-end financial checklist

The end of the year can remind us of last-minute things we need to address and the goals we want to pursue. Here are some aspects of your financial life to consider as this year leads into the next.

Investments: Set a goal to review your investments with your financial professional like the experts at WEA Financial Advisors, Inc. You’ll want to come away from the meeting with an understanding of your portfolio positions. Look over your portfolio positions and revisit your asset allocation. Remember, asset allocation and diversification are approaches to help manage investment risk. They do not guarantee against investment loss.

Retirement strategy: Consider reviewing your current retirement account contributions, including opportunities to maximize deposits to these accounts. This may also be an appropriate time to evaluate catch-up contribution eligibility and determine whether to take advantage of these options.

Taxes: It’s a good idea to consider checking in with your tax or legal professional before the year ends, especially if you have questions about an expense or deduction from this year. Also, it may be prudent to review any sales of property as well as both realized and unrealized losses and gains. Look back at last year’s loss carried forward. If you’ve sold securities, gather up cost-basis information. As always, bringing all this information to your financial professional is wise.

Charitable gifting: Plan charitable contributions or contributions to education accounts and make any desired cash gifts to family members. The annual federal gift tax exclusion allows you to give away up to $19,000 in 2025. Such gifts do not count against the lifetime estate tax exemption amount as long as they stay beneath the annual federal gift tax exclusion threshold. Besides outright gifts, you can explore creating and funding trusts on behalf of your family. The end of the year is also an excellent time to review any trusts. Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional familiar with the rules and regulations.1

Life insurance: The end of the year is an excellent time to double-check that your policies and beneficiaries are up to date. Don’t forget to review premium costs and beneficiaries and consider whether your insurance needs have changed. Several factors could impact the cost and availability of life insurance, such as age, health, the type of insurance purchased, and the amount purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, you may pay surrender charges, which could have income tax implications. Before implementing a life insurance strategy, you should consider determining whether you are insurable. Finally, remember that any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

Life events: Evaluating any significant life changes in the last year.

All these circumstances can financially impact your life and how you invest and plan for retirement and wind down your career or business. Take a moment to review your financial plans and note any updates or new goals you’d like to explore together at your next meeting—we’re here to keep you moving forward.

Call for an appointment: 1-800-279-4030
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Keep in mind that this article is for informational purposes and is not a replacement for real-life advice. Contact a tax or legal professional before modifying your tax strategy. The ideas presented are not intended to provide specific advice. Also, tax rules are constantly changing, and there can be no guarantee that the rules will stay the same for any period of time.

1. IRS.gov, 2025.
Source: FMG

Four financial goals for fall

How times flies! We’re already well into the new school year. Before the holidays close in, why not take advantage of the season by taking a peek at your finances? Here are four things you can do to get ahead.

1. Don’t miss the open enrollment period to participate in a 403(b)

School districts have their own open enrollment times. Check with your district office to make sure you’re not missing an October deadline.

2. Maximize your retirement savings

Could you contribute more toward your retirement yet this year? Saving more may lower your taxable income and help you reach your retirement goals. Check on 403(b) and IRA contribution limits.

3. Take stock of transitions

Summer is often a time of weddings, moving, job changes, and more. If you have had any major changes recently, now is the time to check the beneficiaries on your policies and make sure we have your correct address. It’s also a good time to review your insurance coverage to make sure you still have appropriate coverage.

4. Do a budget check-up

Use our fillable budget sheet and free financial calculators to get a good picture of your spending habits and make any adjustments necessary. It can help you set priorities, keep you from spending more than you earn, and prepare you for financial emergencies.

Ask WEA Financial Advisors about…Market volatility

As of April 2025, tariff talks were progressing and stock prices were seeing more down days than up days as the details rolled out. However, intra-year declines are part of investing. In 2024, for example, stocks pulled back 8% during the year yet arrived at a 23% annual gain.

But pullbacks will test your emotions. “As an investor, you know there are highs and lows during any given year. The challenge is remaining focused during the lows,” says Anna Edelstein, Financial Planning Supervisor at Member Benefits. “It can be tempting to react emotionally.”

If market volatility is feeling tough, keep these points in mind:

Retirement accounts are set up for long-term investing. Focus on your long-term goals and try to ignore short-term market ups and downs. It’s generally not advisable to stop your contributions when the market drops, because your dollars buy more shares when prices fall.

Having clear, prioritized retirement and investment goals will keep you on track, no matter how the market fluctuates. A solid long-term financial plan can help weather short-term volatility and other economic conditions.

A well-diversified portfolio can alleviate some of the effects when the market declines. You want to diversify across, and within, the major asset classes, keeping in mind that investments fluctuate in price.

Take advantage of opportunities to build up your finances by paying down debt, maintaining an emergency fund, and saving up for larger expenses, such as a house or vacation.

Protect your money by staying vigilant for fraud. There are no “risk-free” returns, so be cautious of anyone offering such guarantees. Avoid fraud by working only with registered investment professionals verified through FINRA BrokerCheck and adhering to your established financial plan.

“The Guaranteed Stable Investment through Member Benefits is one option to consider as part of your long-term strategy,” adds Anna. “It’s a more conservative investment in your asset allocation mix.

“If you’re experiencing more volatility than you’re comfortable with, it could be a good time to take a look at your portfolio. We can help with that. Contact us for an appointment.”

Sources: FMG, FINRA

Hidden costs of putting off investment decisions

A lack of action is played out often invisibly, with potential negative consequences to a person’s future financial security. Here are just a couple of ways this can impact your finances.

  1. One of the worst passive decisions may be the failure to enroll in your district’s 403(b) plan—and fund it. Not only would you miss out on a way to save for retirement, but you may also forfeit any potential employer-matching contributions.
  2. If you put off regularly reviewing your investment choices, over time you can end up with a collection of investments that may have no connection to your investment objectives. By not periodically reviewing what you own, you are making a default decision to own investments that may be inappropriate for your goals and needs.

Whatever your situation, your retirement investments require careful attention and can benefit from deliberate, thoughtful decision making.

If you have questions about your 403(b) or need to review your investment allocations, our financial advisors can help. Contact us at 1-800-279-4030 or learn more about our financial planning services. Your retired self will be grateful that you invested the time in making active decisions today.

Source: FMG.

Ask WEA Financial Advisors about…Planned giving

“Planning a major donation for charitable giving can have many benefits, both for the receiver as well as the giver,” says Clancy Cramer, Financial Planner at Member Benefits. “The good news is that you have a number of options to help make a long-lasting difference to the causes you care about.” Here are a few to consider.

Charitable Remainder Trusts (CRTs)

A CRT is a tax-exempt irrevocable trust designed to reduce the taxable income of individuals. It dispenses income to one or more noncharitable beneficiaries for a specified period, then donates the remainder to one or more charitable beneficiaries.

Charitable Lead Trusts (CLTs)

CLTs provide payments to a charity for a set number of years, and once the term ends, the remaining assets go to the donor’s heirs. This may help minimize estate taxes.

Qualified Charitable Distributions (QCDs)

People over 70½ can make tax-free charitable donations directly from their IRAs. These can count toward required minimum distributions for those 73 and older. QCDs are tax-free as long as they are paid directly to the charity and you retain a receipt of the donation.

Bequests and wills

Leaving a portion of your estate to charity through a will or living trust is a common way to make a lasting impact. You can designate a specific amount or percentage of your estate to go to a cause you care about.

“It’s a good idea to research charities to ensure their contributions are being used wisely. Charity Navigator is one example,” adds Clancy. “To help make the most of giving financially, be sure you understand the tax advantages of charitable donations. The financial advisors at Member Benefits can help you learn more and go over donation plan options. Contact us for an appointment, we’re happy to provide more information.”

What is diversification?

Diversification is an investment principle designed to manage risk, though it does not guarantee against loss. The key is to identify investments that may perform differently under various market conditions.

On one level, a diversified portfolio should be allocated between asset classes, such as stocks, bonds, and cash alternatives. On another level, it should also be varied within asset classes, such as a diverse basket of stocks.

For example, let’s say a stock portfolio included a computer company, a software developer, and an internet service provider. Although the portfolio has spread its risk among three companies, it may not be considered well diversified, as all the firms are connected to the technology industry. A portfolio that includes a computer company, a drug manufacturer, and an oil service firm, however, may be considered more diversified.

The concept of diversification is critical to understand when you are evaluating an investment portfolio.

If you want more information on diversification or have questions about how your money is invested, make an appointment with a Member Benefits’ financial advisor to review your personal situation.

Source: FMG.

Market volatility happens

When markets drop, it’s tempting to react impulsively by selling stocks or changing your portfolio. But history shows markets fluctuate—sometimes for days, weeks, or months. Accept the predictable unpredictability of the market. If that seems tough, keep these points in mind:

If you are experiencing more volatility than you’re comfortable with, it might be wise to take a look at your portfolio. Contact us at 1-800-279-4030 if you need help or have questions.

Source: FINRA.

Choosing a financial planner

Getting the answers to important questions up front will help you avoid surprises (the bad kind) later on.

Most people, however, don’t know what questions to ask. When you decide to start looking for advisors, you may find there are many to choose from. You can narrow down your list with some calls or emails asking a few basic questions.

Once know who you’re interested in, it’s time to get more details. Both The National Association of Personal Financial Advisors (NAPFA) and the U.S. Securities and Exchange Commission (SEC) have developed lists of questions that you can use when interviewing candidates.

NAPFA’s consumer resources page has some great tips and tools for choosing a planner. We suggest giving a copy of the NAPFA “Tough questions to ask your advisor” questionnaire to each candidate to fill out. This will make it easy to do a side-by-side comparison and those who don’t want to fill it out can quickly be eliminated from your pool of prospects. In fact, there may be good reason they don’t want to answer some of the questions.

The SEC website provides questions to ask that are specific to investment products as well as the people who sell them. Plus, you’ll find good information about the 403(b) and what to look for when choosing a provider.

Moving money concerns

What are the ways Member Benefits interacts with account holders?

While we generally don’t call every member on a regular basis, we do have customer service representatives, investment consultants, and financial planning staff available. Contact us any time to discuss or review your account. If you utilize our advisor managed portfolios, we will regularly reach out to you to update your risk tolerance preferences. We also provide educational seminars, this magazine, an informational website, and monthly email options, just to name a few additional ways we keep in touch with you and share helpful financial information.

Why doesn’t Member Benefits offer more investment choices?

When it comes to investment lineups, quality is more important than quantity. Our investment committees regularly monitor the performance of the funds in our investment lineup and make changes when needed. We maintain a shorter list because the funds we offer are heavily vetted on the front end for cost, performance, volatility, and other factors. The investment choices span the major asset classes and enable participants to build a well-diversified portfolio. For example, as of March 31, 2023, the moderate advisor managed portfolio offered in our Personal Investment Accounts consisted of 10,640 individual stock holdings with 1,274 bond issues. The average net expense ratio is 0.21%.

Member Benefits won’t give investment advice, but my financial advisor would like to monitor everything I have.

Did you know that Member Benefits DOES give advice and offer financial planning? Our 403(b) program provides you with a private financial planning portal called eMoney—and you don’t pay extra for this service. You get a consolidated view of all of your accounts, and our financial planners can help you with income strategy during retirement, an analysis of your income vs expenses, tax planning, legacy planning, and more. We can also create “what if” scenarios for you to consider to enhance your financial wellness and that of your family.

When you have a 403(b) with WEA Member Benefits, you enjoy many benefits, including:

None of this changes if you’ve retired or changed school districts. So why move to another company where you lose these benefits? Perhaps consider consolidating any outside accounts to your Member Benefits account as well.

This is the third and final article in our series. Read more: