Key Financial Solutions Inc

College student-athletes can now be legally paid for the use of their “name, image and likeness” (NIL) without risking NCAA eligibility. But if you support an athlete through NIL contributions, know that payments made directly to student-athletes aren’t tax-deductible. Contributions to organizations commonly called “collectives” may be deductible, but be sure to clear three key hurdles: 1) Itemize deductions on your return, 2) give only to a collective that’s a tax-exempt charity, and 3) don’t earmark payments for specific athletes or make them in exchange for substantial benefits, such as season tickets. Contact us at (313) 221-9397 to learn more.

You’ll probably owe tax on your retirement income — how much depends on factors such as the types of retirement accounts you own and your other income sources. In general, retirees should withdraw funds from any taxable accounts first, tax-deferred accounts second and tax-free accounts last. But different withdrawal strategies may benefit you. The important thing is to start planning before you retire. Call us at (313) 221-9397 for help.