00:00:02 S1: Today's faith and finance live is actually not live. So our phone lines are not open for, you know, the grace of our Lord Jesus Christ, that though he was rich, yet for your sake he became poor, so that you by his poverty might become rich. Second Corinthians eight nine. Hi, I'm Rob West. It's Good Friday, the day we set aside to reflect on the crucifixion of Christ and what truly happened on that cross almost 2000 years ago. We'll talk about the greatest act of grace in human history. Then we have some great calls lined up, but please don't call in today because we're pre-recorded. This is faith and finance. Live biblical wisdom for your financial journey. For centuries, Christians have called this day Good Friday and it is good. But not because the events were easy or light hearted. It's good because of what Christ accomplished for us. For many believers, this day carries a mix of emotions. There's the sorrow of remembering the suffering Jesus endured and the weight of knowing it was our sin that led him there. And yet, there's also overwhelming gratitude for the love of the father who gave his son, and for the son who willingly laid down his life. It's a day to reflect on the reality that Jesus bore the full weight of our sins on the cross, suffering in our place so that we could be reconciled to God. That's the wonder of the cross. But along with sorrow and gratitude, there's also anticipation. Because we know what Sunday brings, the resurrection of Jesus and the promise of eternal life with him. Good Friday is not the end of the story, it's the turning point. And that's why we call it good. Now, here on Faith in finance, we often talk about money, how to steward it well and use it for God's glory. But the Bible also uses financial imagery to describe spiritual realities. In fact, Scripture is full of words like debt, ransom, redemption, and inheritance because those terms helped people understand the profound truths of the gospel in everyday language. Take Romans 623, for example. For the wages of sin is death, but the free gift of God is eternal life in Christ Jesus our Lord. Or Mark 1045 where Jesus says, for even the Son of Man did not come to be served, but to serve, and to give his life as a ransom for many. And first Corinthians 620 reminds us, you are bought with a price. So glorify God in your body. These verses speak of something far deeper than finances. They describe the cost of sin and the beauty of God's grace. Our sin didn't just lead to guilt. It separated us from the very presence of God, cutting us off from the one who is the source of life and love. Left to ourselves, we had no way to bridge that gap. But Jesus came to restore what was broken as Jesus breathed his last on the cross. The Gospel of John records him saying, it is finished. In the original Greek, the word is tetelestai. In ancient times, this saying was packed with meaning. It was spoken by servants who had completed their assigned tasks. It was used in legal documents to verify that the requirements of the law were met. But most significantly, archaeologists have found this word written on ancient tax receipts and business documents to indicate that a debt had been fully paid. No remaining balance, nothing left owed. So when Jesus declared it is finished from the cross, he wasn't simply marking the end of his mortal life. He was proclaiming the completion of his atoning work. The price of our redemption was paid. The debt of sin was cancelled. The great chasm between God and humanity was bridged not by our effort, but by his sacrifice. And here's the beauty of Jesus final words. They remind us that we don't live in a state of spiritual deficit. We live in the overflow of grace. Jesus didn't make a partial payment on our debt. He paid it in full. We don't have to strive to earn God's favor. No good work can add to what he has finished. We simply receive it by faith and live in the freedom it brings. So on this Good Friday, as we reflect on the cross, we're invited to hear those final words of Jesus Tetelestai. With awe and gratitude, it is finished. The debt of sin has been paid in full, completely, forever. There is nothing for us to earn, prove, or repay and that changes everything. We are free. Free from guilt. Free from striving. Free to live for the one who gave everything for us. Obedience isn't a transaction to purchase favor, but a joyful Response to his grace in light of the finished work of Christ, we now live to follow him, not to gain life, but because in him we've already found it. All right, we're gonna head to a break, so don't go anywhere. Still a lot more to come. Even though we're away from the studio today and you shouldn't call in. We have some great questions that you're really going to enjoy. As we continue to apply God's wisdom to your financial decisions. We'll be right back. I'm so glad to have you with us today on Faith and finance live here on Moody Radio. I'm Rob West. Hey, our team is away from the studio today, so don't call in. We did line up though. Some great questions and we'll get to those just around the corner. But you know here at Moody Radio, everything is about, first of all, the gospel. And then beyond that, helping you live as wise stewards, engaging the culture, living out a biblical worldview in every facet of your lives, whether it's your walk with Jesus personally in your marriage, as you raise your children, and yes, as you manage God's money. And that's our heart on this program, each day is just to walk alongside you in that journey. We know it's a high calling from the Lord, and we want to help you be found faithful. Whatever you're thinking about will help you think about it in light of biblical wisdom and make a confident decision, Lord willing, so you can move forward and live as that faithful steward that I know you want to be. And that's our goal here on this program. Each day is just just to be an encouragement to you, to come alongside you, cheer you on, point you back to God's Word, remind you of the role of money in our lives, a good gift so long as it doesn't compete with our affections for the Lord. But what a powerful tool it is to advance the kingdom, to invest strategically and wisely. To give. To provide even to enjoy. We see that clearly in God's Word. That that's part of why he gives us all of his creation is for our enjoyment. But we also live in a fallen world and the creation can become something we worship. That's not the the place that it was intended to be. It can't provide security or significance. It can't allow us to be in control because ultimately those things belong to God. But if we use it as a tool, holding it open and an open posture, giving it back to the Lord, using it for his glory. Wow, what an amazing resource money is to be able to do all kinds of good. We want to help you do that each day as we kind of reframe the purpose of money for you and at the same time address your very specific question. So let's dive in. We'll begin today in Chicago. Connie. Go ahead. 00:07:44 S2: Thank you for taking my call. Of course, I was diagnosed with ovarian cancer December 24th, and I began treatment. And so because of the treatment, I got terminated from my job because I wasn't ready to come back to work. And so I found yeah. Thank you. And I found out I have a 403 B fund that they said I could withdraw without penalty because I'm 55 and older. And I was just wondering your thoughts about maybe taking those funds out to do some home renovation, because I do have an elderly mom who needs a walk in shower, which I didn't have the funds for. So I just went back to work part time at a new company, and it's only been about a month, so I don't have any benefits with them. I don't have any four 1 or 4 three offered at this time too. So I just wanted to get your thoughts. Thank you. 00:08:38 S1: Yeah. I'd be happy to weigh in on this. And I'm so sorry to hear about your situation. We're going to pray, and I'm going to ask the faith and finance community to be praying for you and your, uh, your full and complete healing will trust the Lord. The who is the the Great Physician? To that end, and I'm glad you're thinking about the path forward as you use these resources. And I love that you want to care for your mom in the midst of all this. Um, so you've gone back to work and you're in a position where you should be able to continue to work full time moving forward. Is that right? 00:09:10 S2: You know, I'm actually struggling to even work part time right now because I'm still in treatment, but I need money to pay for living expenses. 00:09:20 S1: So yes, no, I. 00:09:21 S2: Get it that I can work these hours. 00:09:24 S1: What do you have in that 401 K? 00:09:26 S2: So 403 BO43B it's about $57,000. 00:09:31 S1: Okay. And if you don't mind me asking, what is your age? 00:09:34 S2: Connie 57. 00:09:36 S1: Okay. And with your part time work, are you able to cover your expenses in full, or are you going to need to supplement that with the 403 B? 00:09:45 S2: Um, you know, I have medical bills right now outstanding. But I've had, you know, financial payments each month. So that's what I'm going to continue to do. Right now, the the money that I make, it just barely covers the utilities and just all the things for the home. 00:10:02 S1: Okay. And then do you have any other assets? Do you have an emergency fund, any savings or other investments? 00:10:08 S2: I, I do have some savings and I do have a CD. So that's kind of what I've been dipping into when I needed some extra funds. 00:10:16 S1: Got it. 00:10:16 S2: Because my disability ended and I was getting about 3000 a month in disability and going back to work, I'll be making less than that. So. 00:10:25 S1: Okay. And what do you have set aside in the emergency savings plus the CD? 00:10:31 S2: I have about 40,000. 00:10:33 S1: Okay. All right. 00:10:34 S2: And I'm using those kind of funds for my mom too, just for care as well. 00:10:39 S1: Yeah. And what in a typical month are you finding that you need consistently an extra two, three, four, $500 or is it just kind of when something unexpected comes, you need to supplement. 00:10:51 S2: You know, I've just been kind of because of my health, I've been limited. So I'm not doing as much. Um, I'm not going out because I can't eat. Anyway, um, I had to recently dip into the funds to pay the property tax on the house. Yeah. 00:11:07 S1: Okay. So that's not a part of an escrow in your mortgage payment. 00:11:10 S2: No, no, I mean, it's the house is paid off, so. 00:11:13 S3: Oh, I see. Got it. Yeah. That's great. 00:11:15 S2: I don't have a mortgage to pay. It's just the I have the utilities for the house and just, you know, things and for my medical expenses as well. Okay. So again, I'm very limited. I'm not doing I'm not using a lot of funds anymore due to. 00:11:29 S1: Well, I'm so appreciate what you're doing here. Just to live modestly and try to rein in spending to live within your means. And I realize that's challenging now. Lord willing, you get beyond the other side of this treatment. You've got more strength, and maybe you can add some hours and get back into a situation where you're not only not dipping in, but maybe adding to. You know, these these investments over time so that, you know, when you get to a place where you fully retire, you've got Social Security, but you've also got a bit of a nest egg here. You know, even beyond what you have now, um, what would be the total project cost for this renovation related to your mom's care? 00:12:08 S2: I don't have an estimate, but I think I'm looking at somewhere like a 10,000. 00:12:12 S3: Okay. All right. 00:12:14 S2: To a walk in shower for her? 00:12:16 S3: Yeah. 00:12:16 S1: I mean, obviously, given your situation. I'd prefer we leave that for one K or 403 B alone. But I also realize you've got to do what you've got to do. You're right. You do have this option where with the rule of 55, if you leave your job in the year you turn 55 or later, then you can take withdrawals from your employer's 401 K without that 10% penalty. And it really doesn't matter why you separate whether you are laid off or early retirement, or you just quit all qualify. Um, you know, and you don't actually have to be 55 yet. Just turning 55 sometime in that calendar year would allow you to take advantage of this. Now. Keep in mind, uh, you know, it would still all be taxable, so you wouldn't want that to catch you by surprise. And, you know, make sure that, um, you know, you have set that aside so that you've got that to pay the taxes, whatever that would be. Keep in mind, it's got to be the four, three B from the employer that you separated from, not an old 403 B but as long as it is, you would be able to take it out. Miss that 10% penalty, which you know would be $1,000 on a $10,000 withdrawal. So that's significant. Um, but it but it would be taxable. I'd love to do this for you, Connie. Um, we'll connect you if you're interested with a certified Christian financial counselor. Uh, we've got a team of cert cfc's. These are men and women who've been trained to help with budgets and spending plans. And they love Jesus and they just want to help God's people be faithful stewards. And we'll cover the cost of it just as our gift to you. And if you're interested, this person would meet with you by phone or maybe a Zoom call. You know, two or 3 or 4 times just to look over your situation, help you get a spending plan, maybe give you any ideas you've been missing on kind of how to put all this together. And just having that sounding board might be helpful to you. So if you're interested in that, you stay on the line and we'll get your information and get somebody in touch with you. And again, it won't cost you anything. Connie, we appreciate you being on the program today. We'll be praying for you. And, um, if I can help further, don't hesitate to call back, folks. We'll take a quick break. Uh, back with a lot more great questions right after this on faith and finance. Stick around. So glad to have you with us today on faith and Finance Live. Our team is away today, so don't call in. But we lined up some great questions in advance and we'll be going to those here in just a moment. Let me also remind you that the advice that I give each day on this program is general in nature. We offer principles and ideas that apply at a high level. They are not personalized. So that's why you should always seek professional financial advice. And if you'd like to find a professional who shares your values, we of course here at Faith and Finance Live recommend the Certified Kingdom Advisor designation. These are men and women who've met high standards, and they've been trained to bring a biblical worldview of financial decision making. You can find one at faith fi.com. Let's head to Oklahoma and welcome Ted to the broadcast. Go ahead. 00:15:25 S4: Thank you for taking my call. I have a question. I'm my wife and I are both 70, both retired school teachers. Um, I'm retired military, uh, through Army Reserve, Um, through the years, we've invested a lot into agriculture, farm, farm property and that sort of thing. My question is, uh, we still have a desire to invest, but at age 70 and all of our retirement is, is not tied into the stock market. It's tied into a fixed retirement system. What advice would you give on that? 00:16:04 S3: Yeah. 00:16:05 S1: It's a great question. And I love the idea of diversification. So as you think about kind of what your sources of income are in the future, uh, the good news is that, you know, as retired teachers plus a military retirement, that likely means steady, reliable income, which could give you some flexibility in how you'd invest. But let me walk through each piece of this. And I think first step is to really talk about your foundation, if you will. Um, so before investing anything new, let me just ask, are your pensions covering your living expenses. 00:16:42 S4: Well and beyond. 00:16:43 S3: Okay. 00:16:44 S1: And are you drawing Social Security? 00:16:47 S4: We are. Yes. 00:16:49 S1: Okay. And do you already have an emergency fund of 6 to 12 months? 00:16:53 S4: Yes. 00:16:54 S1: Okay, great. And no debt. 00:16:57 S4: Um, credit card. But we pay that off each month. 00:17:00 S1: Got it. Okay. 00:17:01 S3: So and so. 00:17:03 S4: Actually, no. No debt. 00:17:04 S1: Yeah. Excellent. So that's great because that means then investing can become about growth, inflation protection legacy and extra lifestyle flexibility. I think it's important though for you to define if you haven't already, how much is enough with regard to your lifestyle. And you may have already had that, you know, discussion and prayerful consideration. But once you define enough for your lifestyle, then it's really not that hard to say, okay, how much would we need beyond what we're currently bringing in in terms of guaranteed income to support that lifestyle now and into the future, given some of the unknowns, which would largely be medically related. And once you define enough not only for your lifestyle, but then for your ultimate accumulation, now you're freed up to begin to give even more than you already are. Because you know what your finish line is. Um, let's talk about where the money is right now. So the money beyond, you know, what you're just bringing in on a guaranteed basis each month that you have right now is that largely, you know, sitting in a bank account. Do you have a thrift savings plan? Do you have, you know, CDs or brokerage accounts? What do you have currently currently? 00:18:20 S4: Of course, while we were still actively working, we contributed to a 403 B 457 B and so we have quite a bit of money tied up in that, which has a fixed rate income on it. And then we do also have a CDs at our local bank. Okay. And because we're agriculture related, you know, we, we're still income generating, I guess, because we're in the cattle business. So we're, we're very blessed. Yeah. 00:18:57 S3: I love. 00:18:58 S1: That. And so as you think about investing, are you thinking about maybe changing the investment strategy with the 43B or 457? Or are you talking about leaving that on a fixed rate and just putting the surplus you have on a monthly basis to work, or both? 00:19:15 S4: At some point, whenever the required distribution is required, perhaps rolling that over into a different type of investment. Yeah, but mainly the excess right now. 00:19:29 S3: Got it. Okay. 00:19:30 S1: Yeah. So one thought on that is at any point you could roll the 403 B and 457 as long as you've separated from service to an IRA, which at 70.5 gives you the option. And I realize, you know, you're you're both there. That gives you the option to do what are called qualified charitable distributions. So that as you begin at 73 to require to have required minimums. And you could start that even now if you wanted to. You're able to satisfy those required minimums by giving direct to 500 and 1C3 charities from your IRA. And that is never added to your taxable income. It's the only way to get that money out of these 403 B's and 457 without ever paying any tax, because you got the deduction when it went in. And if it goes straight to charity coming out through a qualified charitable distribution, you never pay any tax. And again starting at 73, any money that's uh, you know, comes out by way of a qualified charitable distribution would also count toward your required minimum. So just keep that in mind. That's a phenomenal strategy with regard to the surplus you have now. You know, I think just getting this working for you, um, you know, in maybe a 50 over 50 type split. I mean, normally at age 70, you know, we would think maybe a 40 in stocks, 60 in bonds, you would have the ability to do something a little more aggressive because, you know, you've got your base covered, if you will, and you have, you know, so much that you've already accumulated. And so if you wanted to go 5050, you could, but the idea would be to get into some, you know, high quality, broadly diversified mutual funds or exchange traded funds. And, you know, at a high level, you'd want somewhere around 40 to 50 in a stock orientation, somewhere between 50 and 60 and a bond type orientation. And the idea would be that that would, over time provide some inflation protection, some growth, and give you the ability, you know, with appreciation to either hang on to that. You know, as a blessing to your heirs or again, as fuel for continued giving. Does that make sense? 00:21:43 S4: It does. 00:21:44 S3: Okay. Okay. 00:21:45 S4: Very helpful. 00:21:46 S1: Alright. Thank you Ted. 00:21:48 S4: Appreciate you very, very much. We'll continue to pray for your ministry. 00:21:52 S1: Thank you sir. It means a lot. And call anytime. Much more to come. Just around the corner. Stick around. I'm so thankful you're joining us today on Faith and Finance Live. I'm Rob West. Hey, just a quick reminder our team is away from the studio today, so don't call in. But in just a few moments we're going to get back to the phone calls we lined up in advance that I know you'll find very interesting. But let me take a moment just to invite you first to be a supporter of this ministry here at Faith fi. You know, we bring you this broadcast every day as a listener supported ministry only because of your generous support. So maybe you listen regularly, perhaps you count on this program, maybe you've been able to apply some of the wisdom from God's Word that you've heard in your financial life, or it's just help you to be that wise and faithful steward, and you'd like to be a part of our team. Well, one way you can do that is by investing in this work through a one time gift, or even by becoming a faith life partner. I just invite you to join us on this journey. When you head to faith.com and click give, a gift of any amount would be a big help. Again, that's faith fi.com and just click give and let me say thank you in advance. Your gift will make a huge difference. All right, let's head back to the phones New Hampshire Mike. Go ahead. 00:23:20 S5: Yes, Rob. Thank you for taking my call. Of course, our church was given a gift of some money from the sale of a house, and I'm just checking to see what you would think. We had a financial planner come in to maybe put this money in some way to grow. While we're waiting to use the money. And how much risk does the church take? They had proposed a moderate risk, which to me seems a little aggressive, but I'm just looking to see. I know when personal finance. I'd be willing to go this far. It's just because it's the church's money. I feel a little more conservative. And should we just stick with putting it in CDs, which are safe? Or, you know, I'm just looking for your opinion on that. 00:24:00 S1: Yeah, it's a great question here, Mike. It's something I've dealt with numerous times in the past on various church finance committees and, and elder boards. But, you know, I think there's really two things that need to be established by either the finance Committee or the deacons, certainly alongside the leadership of the church. And that is an investment policy. Uh, not considering this gift, just kind of at a higher level. What is our investment policy? And then second, what is our cash reserve policy? Because it really starts with how much cash do we want to have on reserve. And then anything else that comes in, unless it's for a specific project, like we're, you know, socking money away because we need a new building or something gets put back into ministry because that's why it was given to advance the ministry purposes of the church and the programming. But apart from that, we do need to have a stated reserve policy and an investment policy. So on the reserve side, you know, I think in addition to whatever, if you have a mortgage on the building, in addition to what the mortgage covenants would require, you want to have liquid reserves. And I would say having nothing is too little and having more than a year is too much. And so figuring out kind of what your policy is just based on the overall health of the church, the giving patterns, the age of the givers, you know, where you're located in terms of what's going on in that local area. You know, a lot of times churches will say, yeah, we want six months worth of expenses or we want three months, you know, whatever it is, but establish that policy so that you know what your target is. Anytime you dip below that, you're budgeting around building that back up. And then the second piece is an investment policy that specifically states what you are willing and not willing to do with anything that comes into the church. I mean, if you were to get a major gift tomorrow, kind of like this one that you're talking about, you know, you don't have to decide what to do with it. It's already been decided in advance. Um, with regard to that investment policy, I would align with you. I don't think there's any reason for a church to take money that was given by a donor, a congregant, uh, or someone from the outside for the church purposes. And to put that at the risk of the market, I just, you know, I would not be in favor of that if I was on the committee. I would say we stay in the category of what is called cash and cash equivalents. So this would be money market funds, what are called sweep accounts where they sweep the money into, you know, high yield, uh, you know, cash like, uh, investments, but where it can be spread out so that there's FDIC insurance across all of it, um, short term treasuries, government money markets, maybe CDs, things like that, where there's, you know, near daily liquidity, you've got principal stability, but you're also getting a modest return. It's not designed to beat inflation, but it is designed to be a good steward and have something coming in. But we're not putting it at risk because again, the whole point is if it's not for reserves and if it is, we need it liquid. We don't want to have to sell it to use it when the market's down. What if the market was down 30%? Uh, we wouldn't want to have to take a loss on it. And if it's not for reserves, then let's get it into ministry sooner rather than later. So I think for all of those reasons, you know, you need to establish that reserves policy and the investment policy. And again, I would be in favor of not including anything that goes beyond cash and cash equivalents. Does that make sense? 00:27:36 S3: Okay. 00:27:36 S5: Absolutely. Absolutely. Thank you so much. 00:27:39 S1: You're welcome. An article you can reference. Just do an internet search for it. It's called church cash reserves. How much is enough? And it's by the Evangelical Council for Financial Accountability. And I think that may give you a little bit of a starting point. If you were to raise this among the church leaders just to say, hey, can we talk about what our policy is here for church cash reserves? It doesn't address the investment policy, but it does address that first part. I hope that's helpful. Mike. We appreciate your call today, sir. God bless you. You know, folks, as we think about investing, I'm all about investing in a way that puts capital to work, especially in God honoring ways. Keep in mind, when we think about God's design for economics and God's design for money. And we know what money is. It's a it's a means of exchange. It's a it's a good gift from God, but it's not morally neutral. But when we put it in its proper place as a tool, I think good stewardship includes putting it to work. Remember everything that's given, whether it's given to the church or local hospital or to somebody on your path in need, starts with business, you know, that's the engine by which now ultimately it comes from the Lord. It's he that gives us the power to to get wealth. We see that in Scripture, but it flows through business. That's part of God's design. And so when we put money to work providing capital to businesses who are providing goods that should be good for people and services that should serve people, and to the extent it's harming or maiming people, I think that's where we need to stay out of those investments. But the extent to which it's good and it's serving, we put capital into business and that creates a virtuous cycle of productivity and production and wealth creation and expansion, and it creates human flourishing as people are working and as those goods and services take God's creation, the latent potential of God's creation, and it improves it, and it orders it and it causes it to be a blessing. And in part, it brings about God's redemptive purposes in the world. So I'm all about investing when it's your capital and when it's mine. I think it is, though, a little different when we talk about a church, because again, the reason those funds are given to the church are to advance God's kingdom. You know, they have a specific and stated purpose and the extent to which it's just wise stewardship to keep keep reserves. Well, we need to have those in cash and cash equivalents that are safe. They're liquid, they're accessible. But apart from that, let's get that money into missions. Let's get it into, uh, you know, programming, let's, you know, pay our pastors and church staff. You know, we should take care of them. But all of those things require that money to be in motion, not to be parked in investments. And I hope that makes sense to you today. Thanks for calling. Well, folks, we're going to take one more quick break and then back with our final segment today. But if you need assistance from a financial or legal professional, we'd love for you to visit faith.com and click find a K. Again, that's faith.com and click find a c k that stands for Certified Kingdom Advisor. Our preferred designation for financial advice from a biblical worldview. We're back with much more just around the corner. Stick around. 00:31:13 S6: This is faith and finance live with Rob West. Hey, if you hear a phone number mentioned today, please ignore that number and don't call us because today's broadcast was previously recorded. But we think the upcoming information will help you and make you a wise steward of what God has given you. So please stay tuned. 00:31:33 S1: Let's head to Texas. Paul. Go ahead. 00:31:35 S7: Yes, I've I know exactly how qualified charitable distributions work, and I've been exercising them through some of my fidelity IRA accounts. I have, uh, a little bit of a very arcane question. I know that it comes to ordinary charitable distributions. There's this little thing called, uh, contemporaneous. And if you don't have that receipt in your hot little hand before you file your tax return, the IRS can consider that documentation invalid. I was wondering, is there the same kind of rules that might apply to the QCD? Because I know in general they're not going to audit you, you know, because you're not deducting anything per se. But should they challenge it like, hey, wait a minute, you took 10,000 out of this account and blah, blah, blah, you need to prove it was a QCD, which in my case, I think de facto from the day one, because I'm having fidelity mail the checks to the charitable institution. So do you have to play the contemporaneous game of having it in your hand? And what kind of documentation should you have at your disposal if the IRS questions you? 00:32:51 S3: Yeah, it's a great question. 00:32:53 S1: Um, you know, I mean, when we look at charitable contributions and this would apply to any gift, charitable gift of $250 or more, you know, what you generally want is the charity's legal name, the date of the contribution, the amount received, and then a statement that no goods or services were provided in exchange for this gift. Um, and that can be a letter or it can be, an official donation receipt. Um, you know. So I think, you know, those are really the key ideas. And in terms of contemporaneous written agreement, yes. You know. Absolutely. Um, and so basically, um, you know, you need to receive it, that written documentation that I just described by the time you file your return or the due date, including extensions, um, it doesn't have to say QCD and the IRA. The IRA custodian doesn't have to report it as a QCD. The IRS relies on your records at the end of the day. Um, so as long as you have that donation receipt or letter or email acknowledgement, um, and the written statement that, uh, you know, no goods or services were provided, then, you know, I think that's really the key idea. 00:34:09 S7: Okay. Well, thank you. Maybe for the benefit of other listeners, uh, you might want to tell them what that is because I was listening to you one day and I go, what? What are you telling me? You mean now I have this magic age and I can. 00:34:21 S3: Shovel. 00:34:22 S7: Free money out of the IRA. So anyway, thanks a lot. 00:34:25 S3: Well, I appreciate that. 00:34:26 S1: And I will, Paul, because it's a great point. In fact, I got a call from a listener the other day who said and she was literally laughing. I mean, it was the ultimate picture of that, you know, being a God loving, a cheerful giver that we read about in the New Testament in this caller's voice. And she said, Rob, I'm giving to my church, to the building fund. I'm giving more than I ever have before. I'm doing it out of my IRA as a qualified charitable distribution, and I'm having so much fun. And here's what Paul's talking about. Listen, folks, when you get money into an IRA, whether you put it into a 401 K and then rolled it out or it went straight into a traditional IRA, remember, you got a tax deduction. So the amount that went into your 401 K or the amount that you put in that traditional IRA was excluded from your taxable income in the year of that contribution. All right. We're on the same page there. And then it grows tax deferred, meaning there's an umbrella over it. If the rain is the taxes, they it hits the umbrella and goes off the side. It doesn't touch the 401 K or the IRA, which means the full amount of the money in those accounts, those pre-tax retirement accounts is growing in the investments that you select. And then typically when you hit retirement over 59.5, you roll that 401 K after you separate from your employer over to an IRA, and then you start withdrawing it out. And you might take 4% a year and use it to supplement your Social Security. And every time you take a withdrawal, the total of all those distributions for the year get added to your taxable income, and then you pay tax on it. Well, there's one exception where you can get that money that, remember, was not taxed going in. You can get it out without it ever hitting any kind of tax. In one case, if it goes straight to charity, doesn't come to you first and then it's given away, it goes straight from your IRA to a 500 1C3 charity, which could be your church or faith fi, or any ministry that's doing the work of Jesus and, and helping people. And when you do that, you don't ever pay tax on it. It's incredible. Uh, and so 100% of that money that comes out of your IRA going to that charity gets to work and advance God's kingdom without ever paying any tax on it. It's amazing. Now, there is one rule. You have to be 70.5 in order to do this, but if you're 70.5, you've got money in an IRA. You can send it straight to a charity. You just call your custodian, whoever sends you your statements from your IRA and say, I want to do a qualified charitable distribution. In Paul's case, that's fidelity. He calls fidelity. They mail a check to a charity, his church, or whoever else. He never pays tax on it. And now that money is advancing God's kingdom. And by the way, this year you can do. I believe it's, um, up to $106,000, uh, for 2026. I'll confirm that that's numbers are a little fuzzy for me. It looks like it's 100, maybe 111,000. We'll double check that, but over $100,000 is the amount you can send out of your IRA. And here's the thing, and I'll get off my soapbox here. But you know, so many people say, Rob, I'm going to die in many cases with millions in my 401 K that I never used. And I could get it to work right now. You remember Ron Blue said in the book Splitting Heirs. If you've read it, do your giving while you're living so you're knowing where it's going. I love that. And, uh, maybe that's you today with money in your IRA. That could be in God's kingdom. Now think about using the qualified charitable distribution. All right. I went on and on there. Let's go to well, we'll stay in Texas. Alfredo. Go ahead. 00:38:11 S8: Yes, I was just calling to see. I have two boys that are special needs. Uh, they were working, but they also have money in their retirement. What can I do to pull that money out without getting penalized? Uh, for pulling it out early? 00:38:28 S3: Yeah. 00:38:28 S1: Uh, do they receive SSI, Supplemental Security income or SSDI? 00:38:37 S8: I think one of them received SSDI and SSI. 00:38:41 S3: Okay. Yeah. 00:38:43 S1: Um, so if it's SSDI, the retirement accounts are safe because it's based on disability status, not wealth. Um, and so, but with SSI, it is in fact means tested, which means an individual can generally own more than 2000 and countable assets. Um, and a retirement account usually counts toward that limit and could disqualify them from benefits early. Um, now you can move up to $20,000 a year. That's this year's limit into what's called an able account a, B, l, e. And money in an able account does not count against the $2,000 limit. And so that's specifically for those, uh, you know, with special needs. And that allows them to keep their savings and their government checks. The other thing you could look at doing, and you'd want to get with an attorney who really has some experience in this area, but you could look at putting a special needs trust in place, which would, again, allow you to put money away that could be available, you know, even well beyond your life to be there to fund the needs of these, you know, special needs. Now adult children who still want to be able to take advantage of the government assistance, but, um, you know, have the additional resources for a wide range of expenses, whether that's housing or food or, you know, other types of needs that they might have. So if it's SSI, it is means tested. You've got to be careful. But I think with the combination of either the able account A, B, l, e, it stands for achieving a better life experience. Um or the special needs trust or both. They can be very effective working together. Uh, you know, that would be the way that you would deal with that. Does that make sense? 00:40:30 S8: It does. Uh, where would I open up an able account? 00:40:34 S3: Yeah. 00:40:35 S1: Um, you know, it's, it's pretty easy to do and it's built on the, the five, two, nine chassis, um, which is where the, you know, you create the, um, college savings funds. And so it's through the state sponsored program, um, a great website to learn more about this. And then ultimately you would pick which state you want to go to is called the, um, the able National resource Center, a b l e national Resource center. You'll find that at abeln. Org that will help you to understand what these are. And then once you choose the state and again, it doesn't have to be your home state, although it could be. Once you choose your state, then you'll go to their website to create the able. Okay. 00:41:24 S8: Okay. All right. 00:41:25 S3: All right. 00:41:26 S1: Very good. Hey, we appreciate your call today. Lord bless you. Thanks for being on the program. Hey folks. Thanks for being with us today. Boy, what a treat to come alongside you to encourage you to help you think about managing God's money. Listen, if you want to apply these principles that we talk about on this program every day and your financial life, and you want somebody who understands the counsel of Scripture that can walk with you. Well, that's why we created the Certified Kingdom Advisor designation. It's the only industry accepted designation across financial services for biblically wise financial advice. It requires really high standards that are ongoing year after year, including a pastor and client reference. Rigorous training. Proctored exam. Statement of faith, code of ethics, annual continuing education, and much more. You can find a Certified Kingdom advisor in your area. There's almost 2000 of them around the country. Just head to find a c.com. Find a c k.com. Well folks, it's been a joy to be along with you today. Thanks for inviting us into your story. What a joy it is to encourage you with God's Word as you seek to be that wise and faithful steward. Our goal that you'd see God as your ultimate treasure. Let me say thanks to my team today. I couldn't do it without them. Amy, Dan, Gabby, tee, and Jim. Faith in finance lives a partnership between Moody Radio and Faith fi. Have a wonderful day and come back and join us next time for another edition of Faith and Finance Live.