Author Archives: Joyce Riggs

Tax-Free Charitable Giving From An IRA

Seniors age 70 ½ or older can make tax-free charitable donation from IRAs that count toward satisfying required minimum distribution and reduce taxable income.

What is a Qualified Charitable Distribution (QCD)?

A QCD is a tax-free charitable distribution of funds directly from the IRA trustee (custodian) of an eligible IRA account payable to a qualified charitable organization that can receive a tax-deductible contribution. A tax-free QCD is defined in IRS Publication 17 – Your Federal Income Tax for Individuals on page 126.

Normal distribution from an IRA of deductible contributions and earning is included in income and taxed as ordinary income. The tax-free QCD removes the distribution from taxable income. QCDs are recorded on Form 1040, U.S. Individual Tax Return 2018 – the sum total QCD distribution is included on line 4 a – IRA distribution, and the abbreviation ‘QCD’ is written on line 4 b – taxable amount.

Who is Eligible to Make a tax-free QCD?

IRA account owners and beneficiaries age 70 ½ or older on the date the tax-free QCD is made to one or more qualified charitable organizations.
Taxpayers who now claim the standard deduction can still make tax-free QCDs.

What type of IRA accounts are eligible for a QCD?

Traditional IRA, Rollover IRA, Inherited IRA accounts and non-active SEP and Simple IRA accounts are eligible for a tax free QCD. Active SEP or Simple IRA account currently receiving employee or employer contributions is not eligible.

Roth IRA accounts are eligible but a tax-free QCD will not lower income tax because distributions from Roth IRAs are already tax-free and not included in income.

What type of retirement savings accounts are ineligible for a QCD?

Employer-sponsored retirement plans, such as 401(k)s, 403(b)s and 457(b)s are not eligible for tax-free QCD. A normal or tax-free QCD distribution to satisfy the IRA RMD requirement in a given tax year cannot count toward satisfying the RMD requirement for employer-sponsored requirement plans.

However, an employer-sponsored plan account owner may consider a direct transfer rollover to an IRA Rollover account that would then be eligible for tax-free QCDs. RMD calculations for tax-deferred IRAs and employer-sponsored retirement plans for the current tax year will be based upon the fair market value of the account at the close of business on December 31 of the prior year, factored by your age and life expectancy. Therefore, before implementing a rollover strategy the time and suitability should be taken into consideration.

What is the tax-free QCD distribution limit?

Seniors age 70 ½ or older may make tax-free charitable donations and exclude up to $100,000 from gross income per tax year by making tax-free QCD’s directly from an IRA. There is no carry-over from year to year. Your spouse may also make a tax-free charitable donation and exclude up to $100,000 from gross income per tax year for a combined total of $200,000.

Does a tax-free QCD distribution count towards Requirement Minimum Distribution (RMD)?

Yes. A tax-free QCD may be an appropriate strategy for individuals who are charitable inclined and do not need RMDs for living expenses. A tax-free QCD can potentially reduce income tax liability on RMDs to zero. A tax-free QCD can be counted toward satisfying your RMD requirements for IRA accounts.

Here is an example of a normal IRA distribution of $5,000 at ordinary income tax rates:
22% 24% 32% 35% 37%

	22%	24%	32%	35%	37%
IRA Distribution	$5,000	$5,000	$5,000	$5,000	$5,000
Income tax	1,100	1,200	1,600	1,750	1,850
Net Distribution	3,900	3,800	3,400	3,250	3,150

Assume you are in the 24 percent income tax bracket – you make a tax-free QCD of $5,000 to count towards satisfying your RMD requirement, provide an income tax break of $1,200, lower taxable income, and help fulfil your philanthropic goals.

The annual RMD must be calculated by you or your custodian for each IRA account, but the sum RMD may be aggregated and distributed from one or more IRA accounts. Note – RMD for employer sponsored retirement accounts cannot be aggregated and distributed from IRAs.

The first distributions from an IRA are consider to satisfy the annual IRA RMD requirement. If you have already taken a portion of your RMD requirement earlier this year, you may consider a tax-free QCD for the remaining balance of the RMD requirement that needs to be distributed before the year-end deadline. The only exception to the year-end RMD requirement deadline is in the first year an IRA account owner turns age 70 ½.

What charities qualify to receive a tax-free QCD?

As defined by IRS Publication 590-B Distributions from Individual Retirement Arrangements (IRAs,) a charity eligible to receive a QCD is a “qualified 501(c)(3) organization (a charitable organization eligible to receive tax-deductible contributions.)” Donor advised funds and private foundations are not eligible to receive tax-free QCDs. Upon request a charity can provide you their IRS issued ‘Letter of Determination’ verifying tax-exempt status. Additionally, please find information about a tax-exempt organization’s federal tax filing status on the IRS web site at www.irs.gov.

How to set up direct payment to the charitable organization?

To make a tax-free QCD, there must be direct payment by the IRA trustee (custodian) on behalf of the IRA account owner to the charitable organization. You may call your IRA trustee (custodian) and request a check made payable to a charitable organization and delivered to you so that you may forward to the charity. (IRS Notice 2007-7, Q&A-41). Consider including a ‘Letter of Intent’ with the check to describe your wishes and purpose of the charitable gift. Check with you IRA trustee (custodian) for year-end processing deadlines for issuing checks. As normal, you will need to keep records to include written acknowledge from the charitable organization for your tax-exempt charitable donation.

What are key benefits of lowering taxable income, Adjusted Gross Income (AGI) for seniors?

A tax-free QCD can count towards satisfying your RMD requirement but does not add to your taxable income, AGI. You may benefit from lowering your taxable income to lower Medicare Part B premium and prescription drug premium for high income earners, lower taxable percentage of Social Security benefits, and larger deductions for medical expenses; among other benefits.

Medicare Premium for High Income Beneficiaries – Potential lower AGI to qualify for lower income threshold to lower income related monthly adjustment amounts for Medicare Part B and Prescription Drugs premiums. For more information, please view Social Security Administration publication – Medicare Premiums: Rules for Higher-Income Beneficiaries.

Itemized Deduction for Medical Expense – Potential lower AGI to reduce threshold for claiming unreimbursed medical and dental expenses you paid. The Tax Cuts and Jobs Act of 2017 (TCJA) lowered the AGI threshold for medical expenses from 10 percent to 7.5 percent for 2017 and 2018 for all taxpayers and reverts back to 10 percent in 2019.

Percentage of Social Security Benefits to be Taxed – Potential lower ‘combined income’ to qualify for a lesser portion of your Social Security benefits to be taxed. For more information, please visit Social Security Administration web page – Benefits Planner | Income Taxes and Your Social Security Benefits.

Summary

Tax-free QCDs may be an effective strategy to fulfill your philanthropic goals and make a lasting charitable impact in your community. Before implementing any strategy, please consult your professional tax accountant, estate planning attorney and/or investment adviser.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. Any investments and strategies mentioned here may not be suitable for everyone. While every attempt is made to provide accurate information, we cannot guarantee the accuracy and completeness of this content. Christine does not provide legal or tax advice.

Written by Christine Parker, CPF®, president of Parker Financial, LLC and member of Sagepoint Senior Services Foundation Board of Officers and Directors.

Sagepoint Senior Services Foundation Gears Up for Our 2021 Golf Tournament

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Sagepoint Foundation Co-Chairs Evie Hungerford and Sally Jameson

Foundation co-chairs Evie Hungerford and Sally Jameson invite you to join the fun during our 2021 Golf Tournament

Last year’s Inaugural Golf Tournament was a rousing success so we have decided to continue the fun for a second year! This year the golf tournament will take place on Wednesday, September 22, 2021 at Swan Point Yacht & Country Club. This is the perfect opportunity to connect with community leaders and make a difference for senior care in Southern Maryland.

Sagepoint is a nonprofit organization caring for seniors and people with disabilities in southern Maryland for nearly 50 years. Your support of the tournament allows us to continue providing vital programs and services for those who need it most.

Sponsorship opportunities have been selling quickly. With different levels available, sponsors make the tournament possible with their contributions and enjoy benefits such as logos on tournament signage and presence on digital and social media.

The Golf Tournament will include a full day of golfing with a captain’s choice scramble format, putting contests and an exclusive raffle for an opportunity to golf at Pinehurst No. 2. Registration for the main event has already sold out, with a waitlist on standby for any last-minute openings.

Luckily opportunities are still available for the Sip and Swing event. If you are new to golf or never golfed before, this is for you! From drinking wine to practicing yoga with just a little bit of beginner golf, you’re sure to have a fun and relaxed day on the course.

Register online today — the Sip and Swing package is listed under “Add-Ons/Extras” on our online registration site. Click here to learn more.

Sagepoint Assisted Living — A True Community

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Sagepoint’s philosophy is that assisted living is about more than services or a facility. It’s about a true sense of place, of fulfillment, of community. Sagepoint offers exactly that…a welcoming and friendly community, where real connections are made among our caregiving professionals and residents.

Each resident receives personalized help with activities of daily living, encouraging independence and interaction. Our staff gets to know each person’s special interests and preferences, and ongoing assessments support aging in place. Private rooms with bathrooms are complemented by nutritious, delectable, full-service dining in our dining room. “Comfort food” and alternative menu choices are also available. Recreational and therapeutic activities fill the calendar. And of course, Sagepoint provides carefully designed and monitored individual plans of care, including medication management, regular visits by physicians and nurses, and many other specialized care details.

We pride ourselves on creating a true home environment. Housekeeping, laundry services and even a full-service hair salon are all included.

Sagepoint also understands the importance of a vibrant social atmosphere. Our residents are provided regular opportunities to interact with neighbors in an engaging environment. Activities like gardening, games, art and music add daily fun in addition to regular interactions out and about each day. We’ve structured our program to center around fostering connection and giving a foundation for friendships to blossom.

To learn more about Sagepoint’s residential assisted living services, please call 301-934-0222 to arrange a personal consultation.

Called to Care: How One Caregiver Followed His Passion at Sagepoint

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There’s nothing quite like helping others. And for our Caregivers at Sagepoint, helping is only the start of what they do. Each GNA, or geriatric nursing assistant, comes to work ready to engage and support our seniors in new ways each day. No two Caregivers have the same story, but they all share a passion for what they do. This is how Duane Izlar found the field of Caregiving — and why Sagepoint has been the perfect fit for him.

From Construction Work to Caregiving

For Izlar, being a Caregiver wasn’t always in his plans. He actually switched career paths following experience in the construction industry. While this may seem like a big transition, it actually was more natural than you might expect.

Izlar’s brother had already been working as a Caregiver and had mentioned on many occasions that Izlar himself would be great at the job. Later on, when Izlar’s grandmother needed assistance, he began caring for her before looking to become a professional Caregiver.

“I’ve always liked helping people,” reflects Izlar. “It was meant to be.”

Starting a New Career at Sagepoint

After a decade in the Caregiving industry, Izlar knew of Sagepoint’s stellar reputation. In preparation to start a career here, Izlar took part in a free course that Sagepoint offers to interested Caregivers. Over the span of several weeks, these lessons offered intensive training in all areas needed to become a successful Caregiver. This includes review of relevant health care practices as well as Sagepoint-specific protocols. At the end of the training course, each individual takes a test through the Maryland Board of Nursing to earn their certification.

What Everyday Life is Like for a Caregiver

In his four years at Sagepoint, Izlar has come to appreciate that no two days will ever be the same. He often starts his days checking in on his patients, making sure they feel good and are taking all of their prescribed medications.

“We’re first in line when they have questions or need care,” says Izlar, who notes that he works closely with the full team of nurses to meet the needs of each person. Izlar works specifically with the Rehabilitation team, which can serve both long- and shorter-term patients. He says he values the conversations shared with them throughout the day.

Changes During the COVID-19 Pandemic

In March 2020, the world turned upside down as everyone began scrambling to combat the COVID-19 virus. Izlar remembers this time vividly, noting, “it was scary for everybody.”

Despite the initial confusion and panic faced in medical facilities across the globe, the team at Sagepoint “came together” through it all. Even when medical equipment seemed scarce, there was always some available for Caregivers — and every person on staff was careful to follow updated CDC recommended protocol as new measures were announced.

While the experiences of the past year were sobering for everyone in our community, Izlar and his fellow Caregivers are the biggest reason we were able to come out on the other side. And Izlar himself can see the difference he makes in the lives of his patients, saying “At the end of the day you’re actually helping people — and that’s something I’m proud of.”

For Every Stage of Senior Care, There’s Sagepoint

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Care for an aging loved one can take many stages. For family members and primary caregivers, the decisions about what type of care is right at what point in time can feel overwhelming. But the professionals of Sagepoint Senior Living Services have more than 40 years of experience serving families in Southern Maryland through all stages of aging. When the time is right to seek the best care — and successive levels of care — Sagepoint is the trusted source.

Adult Day Services

Sagepoint’s specially-trained day service providers provide help with daily activities from simple assistance to total care. Services range from administering medications and monitoring of physical conditions to nutrition consulting, weight management and other daily health oversights. Even accompaniment to social outings when family members cannot attend can be provided. We can alleviate many of the everyday worries that families and friends face for aging loved ones.

Home Care

A helping hand, a companion, a confidante. The Home Care professionals at Sagepoint can fulfill all of these roles in the comfort and security of your loved one’s own home. The challenges of daily housekeeping, laundry, cooking, errands, shopping and other everyday activities that most people take for granted can be attended to by our visiting in-home service providers. We get started with a comprehensive needs assessment by our Registered Nurse Case Manager. Depending on case by case needs, our home care professionals can provide bathing and grooming assistance, toileting and ambulation help and feeding assistance. Of course, the simple comfort of daily companionship that people of all ages need is equally important. All of these heartfelt services and more are available from Sagepoint.

Assisted Living and Memory Care

Life is to be enjoyed, at every stage. Everyone at Sagepoint holds that ideal in high esteem, and it guides our care services for your aging loved ones who need a residential setting that truly meets their changing needs and focuses on their safety, security and happiness. Sagepoint’s progressive in-residence care services — including assisted living and memory care — address every family’s concerns and needs on a personal level.

To gain more knowledge about Sagepoint Senior Living Services, please phone 301-934-0222 to arrange a personal tour.

Sagepoint’s Donors Provided Unprecedented Support in 2020

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As a senior care nonprofit organization, Sagepoint has faced deep challenges during the COVID-19 pandemic, and our financial needs have increased dramatically since the spring of 2020:

Increased equipment costs for supplies such as HEPA filtration, sanitation and technology needs
Regular purchasing of personal protective equipment supplies for staff and residents
Soaring costs of continued weekly testing for staff and residents
Additional staff education to keep up with extensive regulatory changes throughout the pandemic.

However, our gracious benefactors have helped the organization meet these challenges by increasing their generous donations over the past several months to help us counter the effects that COVID-19 has disproportionately had on seniors. For this, we are honored and immensely grateful.

Please visit our website here to learn how your contributions can continue to help Sagepoint sustain the health and well-being of seniors in southern Maryland during these unique times.

SAVE THE DATE!

Sagepoint’s Annual Golf Tournament is September 22, 2021.

We will continue to update you with more information.

Sagepoint Senior Services Foundation Welcomes Community Leaders to Foundation Board of Directors

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As a respected nonprofit organization in service to the people of Southern Maryland, Sagepoint holds it in the highest importance for our top leadership to be pillars of the community who demonstrate our shared commitment to our fellow citizens on a daily basis. This is why we are particularly proud to welcome three new members to our Foundation Board of Directors.

Charles County Sheriff’s Office Sergeant Augustus “Gus” Proctor is a Charles County native who has shown his dedication to county residents throughout his career and personal life. Sgt. Proctor has been with the Sheriff’s Office for 29 years, and today serves as the Southern Region Coordinator and Administrative Sergeant for Districts 1 and 2. He volunteers with Lifestyles of Maryland, Special Olympics Maryland and also serves on the Board of the Spring Dell Center. He and his wife have three children and two grandchildren.

Shirley Hancock retired from the Charles County Department of Health after 38 years as a nurse in several areas of public health, including maternity, pediatrics, communicable diseases and geriatric care. As part of her duties at the Health Department, she served as an Acting Director of Health Partners in Waldorf, and upon retirement was the Supervisor of the Colorectal and Prostate Cancer Programs. Nurse Hancock volunteered for over 15 years for the University of Maryland Charles Regional Medical Center Foundation Board of Directors. She served many roles for the Foundation such as a term as the Board Chairperson, Chairperson for the gala event for many years and a member of the Capital Campaign Committee. Shirley lives in La Plata and is married with two children and two grandchildren.

Ann Page brings a 44-year career in health care to her position with Sagepoint. Prior to her retirement in 2019, she served with the U.S. Department of Health and Human Services’ Health Quality and Outcomes Division in the Office of the Assistant Secretary for Planning and Evaluation. She has been a past Director of the Health Care Delivery and Management Administration of the D.C. Department of Health Care Finance. Her career has also included health policy leadership positions with the National Academy of Science’s Institute of Medicine, the Maryland Governor’s Office, the National Committee for Quality Assurance and the nationwide Institute for Health Policy Solutions in Washington, D.C. Ms. Page is the author of dozens of health care policy publications.

These new Board members join Sagepoint’s already exemplary Board leadership. The Board of Directors for 2021 is as follows:

New 2021 Officers:

Christine Parker, Chair
Sue Greer, Chair Elect
Craig Renner, Secretary
Terry Weaver, Treasurer
Board Members:
Sally Jameson, Immediate Past Chair
Carolyn Core, SSLS Board Chair
Andrea Dwyer, President and CEO
Scot Ebron
Shirley Hancock
Evie Hungerford
Ann Page
Augustus “Gus” Proctor
Joyce Riggs, Foundation President

Multiple Awards of Excellence Show Sagepoint’s Commitment to Our Clients and Their Families

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Since the COVID-19 pandemic began in full in March 2020, countless segments of society have obviously felt its effects. One segment, in particular, is the senior community, as well as their families and the people who serve them.

In our long-standing tradition of innovative commitment to the community, the staff and leadership of Sagepoint Senior Living Services have risen to this past year’s unique and unprecedented challenges, and we are proud to say that not only have our clients and their guardians recognized our efforts, so have third-party sources who annually evaluate standards for senior care in the United States.

For the second year in a row, US News and World Report named Sagepoint a Best Nursing Home. This year it is especially noteworthy to again be included in this top tier, given the exceptional care requirements that the ongoing pandemic has brought to Sagepoint and our senior care peers across the country.

Two respected publications also named Sagepoint as a Best Nursing Home for 2020, one regional and one national. The readership of Southern Maryland News voted to rate leading senior care providers in Southern Maryland, and Sagepoint won Readers’ Choice. Newsweek also surveyed its readers and subscribers, placing us in the Top 5 Best Nursing Homes for 2020 on a national level.

Everyone at Sagepoint is honored to have these awards bestowed upon us, and we pledge to provide the same exemplary standards of service in 2021 and for years to come.

Sagepoint Home Care Services — Where Peace of Mind Lives

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The comforts of home are universal at any stage in life, so it is certainly understandable that most older adults wish to stay at home as long as possible to age in place. Remaining at home permits a full life lived with dignity, respect and purpose.

Many experts, families and older people themselves firmly believe that living at home for as long as possible actually keeps people more physically active and mentally engaged later in life. At Sagepoint Senior Living Services, we absolutely agree.

Sagepoint’s experience in elder care over more than 40 years has given us unique insights and expertise in providing home care living assistance services to seniors and their families throughout Southern Maryland.

For many of our Home Care clients, whether arranged directly by them or by their families, care services are simple and straightforward. They may involve home visits a few days a week or daily to assist with regular activities like light housekeeping, laundry, light meal preparation, or escort services to appointments and regular errands. Sagepoint’s Home Care visits also provide companionship for older people who aren’t able to visit with family and friends as often as they’d like. And let’s be honest…in the era of COVID-19, a little friendly human interaction is something everyone appreciates, no matter what their age.

For some Sagepoint Home Care clients, of course, daily needs are more complex. Depending on their level of ability, clients may need help with feeding, bathing and personal care, dressing or toileting. Comprehensive meal planning and preparation may be required, along with medication reminders and administration. Needs assessments by Registered Nurse (RN) Case Managers ensure the proper level of involvement, and personal care services are performed by trained caregivers.

The benefits of Sagepoint Home Care Services are focused not only on the elder person in their home, but on their caregiving family and friends, as well. Daily life simply sometimes beckons, and proper in-home care gives family members guilt-free assurance that their loved ones’ needs are attended to when they simply can’t be there. Sagepoint Home care is likewise reassuring for the elderly care recipients, knowing that their daily care needs won’t necessarily overburden others.

For more information on Sagepoint’s Home Care Services, including details about qualifying for financial assistance, please visit our website here.

Supporting Sagepoint is a Gift to Our Patients And Their Loved Ones

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As the year winds down, we’re asking our supporters to make a donation to support our year-end fundraising campaign, “So Many Ways to Give.” And we want you to know who you’re supporting — from the difference it makes in the lives of our residents to the peace of mind it brings to their families.

At Sagepoint, there is no higher compliment than when a resident or their loved one recognizes the effort and compassion that our staff brings to work each day. Our team gives so much of themselves to care for our seniors, and it is truly affirming to hear the simple words, “Thank you.”

There is also something special about a handwritten note, like the one we received from Victoria S. Here is what she wrote:

To all the employees at Sagepoint,

I wanted to thank you from the bottom of my heart for all the love and patience you have shown not only for my brother but also for all the other residents at Sagepoint.

I had the privilege to visit you guys in October of 2019 and I had the chance to observe the amount of care and love as well as the amount of dedication and hard work you guys put into Sagepoint to make it an excellent place to stay.

I am writing this letter to show my appreciation. Thank you.

Our team is so thankful for all of our residents and the family members who entrust us with their care. Each one gets our full attention and our best efforts to ensure their health and safety each day. But, as you know, the pandemic has made that task more difficult and more expensive.

We rely on the support of our community to be able to provide the highest levels of care. Will you help?

Make a Gift Today.