When my son Shane was a senior in high school at CVCA, I took him to New York City for a long weekend as his Christmas present in January 2009. We explored midtown Manhattan, Shane ice skated near Kelly Ripa in Central Park, and we got to see the musicals Spamalot and Wicked. With the film adaptation of the Broadway musical opening Christmas Day, Wicked has been in the headlines a lot recently.
Source: Spotify
"For Good" is a number from the hit musical Wicked. It is sung as a duet between Elphaba (the Wicked Witch of the West) and Glinda (the Good Witch of the North) as a farewell. The song's lyrics concern how both Elphaba and Glinda have been changed by their friendship with each other. Glinda begins by saying that, while she doesn't know if it is true that people come into each other's lives for a reason, "I know I'm who I am today because I knew you." Similarly, Elphaba tells Glinda that "whatever way our stories end, I know you have rewritten mine by being my friend."
For those of you who are unfamiliar with the song, I have included a YouTube link to a performance by the original actors from the Broadway musical Kristin Chenoweth as Glinda and Idina Menzel as Elphaba below.
"For Good" Performed by Kristin Chenoweth and Idina Menzel | WICKED the Musical
Are you looking for an opportunity to use some of your IRA assets to help others, while also enjoying some tax benefits? Please allow me to introduce you to the world of Qualified Charitable Distributions (QCDs)! This is a tool that will allow you to spread goodwill and reduce your tax bill at the same time. Sounds amazing, right? Let’s dive into how you can turn your IRA into a force “For Good.”
What is a Qualified Charitable Distribution (QCD)? Picture this: You’re 70½ years old (or older), and you have an IRA. A QCD allows you to donate directly from your IRA to a qualified charity without paying income taxes on the distribution. Yes, you read that right – tax-free giving! While you won’t get a charitable gift tax deduction, the fact that these donations are tax-free is a major win in itself.
In order to get the most out of your QCDs, there are a few rules to keep in mind:
- Eligible IRAs: Your donations must come from traditional or inherited IRAs. Sorry, 401(k)s and active SEP or SIMPLE IRAs don’t make the cut.
- Age Matters: You need to be at least 70½ years old when you make the donation. For inherited IRAs, it’s the beneficiary’s age that counts.
- Dollar Limit: The max amount you can donate as a QCD in 2025 is $108,000, with adjustments for inflation. This gives you plenty of room to use your resources “For Good!”
To qualify as a QCD, your donation must be transferred directly from your IRA to the charity. If the money touches your hands first, it’s game over for the tax-free perk. Although you can still claim a charitable deduction, if you itemize, it might not be as beneficial as a QCD. The CFP's of Impel Wealth Management have always encouraged clients to use funds that they will not need or use to bless others. If you need help exploring the right qualified charitable organization to give to, please reach out to us. We have many resources and connections in the community that may be of interest to you.
You can choose any qualified charitable organization for your QCDs, but remember, you cannot transfer money from your IRA to your donor-advised fund. Here’s another important point to keep in mind, if you need to take a Required Minimum Distribution (RMD), amounts donated via QCDs can help you satisfy that requirement in a tax-free manner.
As we look at the closing lyrics from the song, You may want to ask yourself, “Will somebody be able to say that they were changed For Good because they knew you or because you were generous to them?”
(Both):
Who can say if I've been
Changed for the better?
I do believe I have been
Changed for the better
(Glinda):
And because I knew you...
(Elphaba):
Because I knew you...
(Both):
Because I knew you...
I have been changed for good...
For those of you who are not familiar with the Broadway show, here's a spoiler. The movie Wicked that was released in December 2024 was only the first act of the Broadway show. The second act of the show is set to arrive in theaters at Thanksgiving this year and is entitled, “For Good”. I thought this was an important topic to share with those of you who have been blessed beyond your needs and have a desire to help others as we continue “Moving Life Forward.”
© 2025 Jesse Hurst
Senior Wealth Manager
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