The Setting Every Community Up for Retirement Enhancement (SECURE) Act was enacted Jan. 1, 2020. With it came many questions for those who are planning for retirement, retired or who are retiring in the near future. Passed as part of a spending bill, the SECURE Act brought with it the most significant changes to retirement plans since 2006. While some changes impact you, others will impact the people you name as a beneficiary.
For more information on the SECURE Act, click on the link below:
The FAQS on the SECURE Act
Through planned giving opportunities, a donor can create a legacy at Presbyterian Manors of Mid-America (PMMA). These gifts may be unrestricted in nature, or directed to a specific program or purpose in the name for one of the senior living communities of PMMA.
Which gift is right for you?
There are a number of ways to amplify your impact at PMMA. To find the gift vehicle that is right for you, rank these benefits in order of importance to you:
To retain flexibility, consider a gift to PMMA in your will or trust. Since this gift will not become effect until after your lifetime, you are free to change your mind at any time to adapt to unforeseen circumstances.
To receive an income tax deduction and eliminate capital gains tax, make a gift of appreciated assets that you have owned for more than one year. Your tax deduction will be for the full fair market value of the donated property up to 30 percent of your adjusted gross income and you will be exempt from paying capital gains taxes on any increase in value. We will sell the assets and use the proceeds to support PMMA.
To ensure the future of Presbyterian Manors of Mid-America, make a gift of $100,000 or more to create a named endowment. PMMA will carefully invest the money and then a portion of the earnings is released each year to continue the mission. The rest of the endowment remains invested to create a lasting legacy.
To provide for your heirs, make sure their inheritances don’t carry an unnecessary tax burden. Distributions from qualified pensions and retirement plans, for example, are subject to income taxes at the beneficiary’s ordinary income tax rate. Instead, consider leaving less tax-burdened assets, such as real estate and life insurance, to your loved ones and naming Presbyterian Manors of Mid-America as the beneficiary of pensions and retirement plans. PMMA is eligible to receive the full amount of these assets and bypass any federal taxes.
To supplement your retirement income, arrange a charitable gift annuity with Presbyterian Manors of Mid-America. In addition to supporting PMMA with your gift, you will receive fixed payments for life and a partial income tax deduction in the year your gift is made.
The following table further outlines just a few of the options available and the benefits they can have for you.
|Gift Type||How it Works||Benefits to You|
|Bequest||Name Presbyterian Manors of Mid-America in your will or revocable living trust.||• Gift is exempt from federal estate tax
• You control your assets during your lifetime
|Outright gift of cash||Simply write a check or transfer funds.||• Gift is immediately tax deductible
• You get to witness the benefits of your generosity
|Outright gift of securities||Contribute long-term appreciated stock or other securities.||• Gift is immediately deductible based on full market value
• Eliminates capital gains tax
|Outright gift of personal property||Donate tangible property for our tax-exempt use.||• Gift is immediately deductible based on full market value|
|Gift of life insurance||Contribute a life insurance policy you no longer need.||• Gift is immediately tax deductible
• Gift may provide future deductions through contributions used to pay policy premiums
|Gift of retirement assets||Name PMMA as the beneficiary of the balance that remains after your lifetime.||• Gift can be made from your most highly taxed assets, leaving more for your family
• Eliminates income and estate taxes
|Gift of real estate||Donate property to PMMA or sell at a reduced cost.||• Gift is immediately tax deductible
• Reduces, or eliminates, capital gains tax
|Charitable remainder trust||Create a charitable trust that pays you a set annual income (annuity trust) or a variable amount based on a fixed percentage of the trust’s assets as revalued annually (unitrust).||• Gift is immediately tax deductible
• Provides income for life, often at a higher rate of return
|Charitable gift annuity||Enter a charitable gift annuity contract with PMMA that pays a set amount for one or two lives.||• Immediate savings on income taxes
• Tax-favored fixed payments for estimated life expectancy of income beneficiary(ies)
|Charitable lead trust||Create a charitable trust that pays fixed or variable income to PMMA for a specific amount of years and thereafter the balance is given to loved ones.||• Reduces your taxable estate
• Property is ultimately given back to your family often with reduced gift taxes.
For a printer friendly version of the chart above, or for more questions about charitable IRAs, click on the links below.
Beyond the methods listed above, you can also contribute to the mission of PMMA by sponsoring an event, or through retail programs such as Kroger/Dillon’s Community Rewards and Amazon Smile.
To learn more about these, or any of the contribution methods listed above, contact the PMMA development office at Development@pmma.org or call 800-336-8511.