(724) 852-1500
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Milinovich & Co., Registered in FL



Milinovich & Co., RIA has been approved to conduct business in Florida by the Florida Office of Financial Regulation, effective May 29, 2018. This arduous task took months to accomplish, as our firm was reviewed and verified that it met Florida Securities regulations. This enables Milinovich & Co. to service an unlimited number of clients from that state. If you should have any questions concerning this, you can query FINRA’s Brokercheck website. Our firm’s CRD# is 122894 and my CRD# is 6442662 and my brother Tom’s CRD # is 4590089. Our firm’s website is www.MilinovichRIA.com, and we welcome any and all questions you might have.

 

 

What is a QCD?



Beginning in 2016 there is a new option for IRA owners or beneficiaries that are 70 ½ and required to take an RMD (required minimum distribution) distribution from their IRA. The new change is called a QCD, or, Qualified Charitable Distribution. The new change permits IRA owners and beneficiaries to make charitable distribution to their favorite charities and not have to pay income tax on the RMD income on their federal income tax return. This also causes the amount not to be deducted as a charitable contribution on Schedule A – Itemized Deductions.

This is advantageous to many individuals for various reasons. If you don’t itemize, this permits you to get a tax reduction for the RMD that goes directly to the charity and still claim your full standard deduction. If you are a high-income individual with more than $250,000 of AGI, you would get the full tax reduction at your highest tax bracket on the RMD plus, you could save 3.8% medicare tax on interest, dividends, capital gains or rents & royalties. If you itemize, you would get the full tax reduction at your highest tax bracket rather than having part of your itemized deductions reduced if your AGI is over $310,000 if married or $155,000 if single.

Examples

Based upon situations for both single and married individuals who are over 70 ½ with a RMD (Required Minimum Distribution) from an IRA and those who do not itemize because their itemized deductions are less than $6,300 if single and $15,100 if married still benefited more than one might think.

In fact, it is these two groups who tend to benefit more than originally thought. If they are at a 15% regular income tax rate, but if part of their taxable social security is reduced because of this new QCD, the effective benefit is now more than their base income tax rate and could be as much as a 26% to 28% actual tax reduction.

This is because they still keep their full standard deduction, but reduce their AGI (Adjusted Gross Income) which now has also reduced their taxable social security.

Taxpayers at higher tax rates could also benefit because of two additional tax rules in addition to their own base tax rate of 25% or 28%.

An individual at a regular tax rate of 33% could increase their tax reduction by using this new qualified charitable distribution to as much as 40.9%. This is for those individuals who have investment or royalty income subject to the 3.8% medicare tax and whose itemized deductions are being limited due to their higher income. Individuals with the maximum regular tax rate of 39.6% could see a maximum tax reduction of 48.9% for the same above stated reasons.

If you are interested, please contact us to calculate the total tax reduction if you chose to increase your contributions to charitable non-profit organizations by using this new QCD that has now been made permanent by Congress since 2015.

 

 

Fiduciary- What does that mean?





The dictionary definition is “Involving trust, especially with regard to the relationship between a trustee and a beneficiary.”

Simply put: a fiduciary is a person who works in the interests of another person.

At Milinovich & Co., Inc., that is something we have been doing since our inception as a Registered Investment Advisor in 1998. We work for you, and you pay us for that work. We do not receive any money or compensation from any other company. That allows us to be independent in our recommendations of what investment would be best for you. We receive our compensation based on the value of your assets under our management (AUM). As your funds perform better, we do better as well. There are no hidden fees or commissions. This type of accountability is best for all because you can count on Milinovich & Co.’s professional oversight and recommendations for your investments. You can see exactly what you are paying for, and how your funds are growing. That is what a fiduciary does. That is what we do.



Milinovich & Co., Inc. Registered Investment Advisor