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By: Michelle Rosenheim – Executive Director of Lutheran Village at Miller’s Grant (LVMG)
Nursing homes and senior living communities offer several benefits, but there are key differences, including primary focus, environment, levels of care, accommodations, and amenities that older adults should be aware of before choosing an option.
Nursing Homes: Round-the-clock Care and Supervision
With a focus on medical care – delivered by doctors, nurses, and aides – nursing homes are ideal for seniors who are dependent upon nursing care due to a physical or cognitive diagnosis. In addition, occupational, physical, and speech therapists are often on staff to help slow the progression of chronic conditions. Residents often live in nursing homes permanently because they require constant care and supervision.
Nursing homes provide residents with assistance for activities of daily living (i.e. dressing, bathing, medication management, eating, ambulating, and more). In Maryland, nursing homes are staffed 24/7 with at least one licensed nurse. The nursing team is ever present, keeping a watchful eye on each resident.
Accommodations can be private or semi-private rooms. Services such as nutritional counseling, therapy services, management of care, hospice care and end-of-life care are typically offered.
The goal of nursing homes: Delivering the highest level of care possible outside a hospital setting and helping each person stay as well-cared for and comfortable as possible.
Continuing Care Retirement Communities (CCRC): Multiple Levels of Care Offer Independence
At CCRCs, resident independence and well-being are the primary focus. At Lutheran Village at Miller’s Grant, independence is primarily supported through active aging, on-site amenities, and safety features.
Active Aging
A key driver of independence is living an active aging lifestyle. At LVMG, we promote active aging with stimulating activities from our lifelong learning classes and award-winning wellness program, Flourish™.
Our lifelong learning classes provide residents with many chances to feed their mind, body, and spirit. Whether it be researching history, creating a work of art, practicing mindfulness with Tai Chi and meditation, or discovering other interests, our lifelong learning classes – many of which are taught by college professors – provide residents with a chance to explore and grow.
Our Flourish™ wellness program offers residents endless opportunities to learn, create, give back, and, most of all, flourish. With a holistic approach to wellness, residents are inspired to reach their personal best based on seven dimensions of senior wellness – emotional, environmental, intellectual, physical, social, spiritual, and vocational.
Amenities
Our on-site amenities also support independence. For example, when driving becomes an issue, residents can continue living with the independence they are accustomed to without having to sacrifice a fulfilling lifestyle.
Residents can continue being physically active in our fitness center, indoor pool, tennis court, and walking/biking trail. They can continue pursuing hobbies such as growing flowers, herbs, and vegetables in our resident garden plots, share their musical talents in our musical programs, hone their woodworking skills in our woodworking shop, cultivate their quest for knowledge and passion for reading in our library and connect with neighbors and friends over shared interests in our resident clubs (e.g., genealogy, bird watching, quilting and more) and resident committees (e.g., resident association, building, welcome, health and more). If they are looking for some light-hearted competition, they will find that at our billiards table, ping pong table, croquet court and corn hole, and bean bag tournament area.
Within short walking distance, residents have access to multiple dining venues, including Zest, our formal dining with wait staff and farm-to-table focus, and Bistro and Main Street Pub for casual dining. Many of our residents enjoy welcoming the morning in our Coffee Curve, sipping a cup of coffee or tea over light conversation with other residents. Whether it be Super Bowl, March Madness, Preakness, or other sporting events, our residents come to our Main Street Pub to watch the main event on its big screen TV while enjoying a specialty cocktail, beer or glass of wine, and small plate cuisines.
We also offer local transportation so residents can continue conducting their own errands (e.g., grocery shopping, checking out books from the local library, and venturing off for outside entertainment such as concerts and trips to cultural attractions). The best part is residents who continue to drive can take advantage of our transportation service as well, which can be especially helpful when they need to run an errand during less than ideal weather conditions.
Safety
CCRCs, like LVMG, are designed for safety, which goes a long way in supporting independence. Older adults are at a greater risk for falls, which can occur because of vision changes, inability to maneuver assistive devices (e.g., walker) in tight spaces, lack of safety features, and multiple other causes. Although some may be able to rebound just fine from a fall, others are not.
Understanding lighting needs for aging eyes, our apartments, homes, and community spaces are brightly lit and incorporate a lot of windows for natural lighting, which also offers nice views of our wooded community.
LVMG is designed and built with accessibility as a top priority. Spaces are constructed so all residents can move easily and safely from one area to another within their apartment or home and around the community, regardless of mobility challenges.
Bathrooms can be a prime location for falls, which is why our bathrooms are equipped with grab bars, elevated toilets, non-slip flooring, and easy-to-use fixtures in all residences.
Additionally, emergency call systems (i.e., pull cords and motion sensors) are installed in apartments, homes, and community spaces and are available as wearable pendants. Plus, with 24/7 staffing, help is available when needed.
Continuity and Levels of Care
When medical care and rehabilitation are needed, residents have access to our on-site rehabilitation services, which include physical, occupational, and speech therapy, and medical services, including primary care, podiatry, dermatology, behavioral health, and audiology. These health care services provide a continuity of care – making sure the right care is provided so residents can continue being independent as best as they are able.
As residents find they need a little more help – whether that be dressing, bathing, medication management, or specific treatments for a medical issue – they can seamlessly transfer to a greater level of care. Ever mindful of resident dignity and desire for independence, our approach to care is person-centered.
Our team tailors assistance and care according to each resident’s unique needs – delivering just the right amount of help needed. Our person-centered care approach helps each resident remain as independent as possible and enjoy his/her best quality of life.
The goal of CCRCs: Encouraging independence while enjoying life to the fullest at all levels of care and providing a seamless transition when care needs increase.
Nursing homes focus on providing medical care and can be an ideal solution when there is an immediate need for 24/7 care. CCRCs, like LVMG, are the best solution for older adults who can still live independently but want more out of life – than taking care of a home – and peace of mind knowing they can remain in the same community as their care needs increase.
For more information about LVMG, visit www.millersgrant.org.
Estate Planning for Surviving Spouses – Considerations, Recommendations, and Procedures
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The Elville Center for the Creative Arts – Bringing Students Together by Supporting Music Education
By: Jeffrey D. Stauffer – Executive Director – Elville Center for the Creative Arts, Inc.; Community Relations Director – Elville and Associates, P.C.
“Music does bring people together. It allows us to experience the same emotions. People everywhere are the same in heart and spirit. No matter what language we speak, what color we are, the form of our politics or the expression of our love and our faith, music proves: We are the same.” John Denver
As the Elville Center for the Creative Arts looks back on the 2022-23 school year and the thought of the upcoming fall semester is like the faintest first light of the morning sunrise, the foundation of its mission remains the same as we work to “Make a Musical Difference in the Lives of Children” each day.
How do we accomplish this somewhat daunting yet worthwhile to its core mission? The Elville Center provides student musicians the opportunity to learn music theory and application, experience cultural events related to the musical and creative arts, and to use music and the promotion of music-related activities to transcend social and economic divisions. The Elville Center partners with school music programs, arts organizations, and local businesses to give the gift of music to children of all ages who want to participate in music but don’t have the means to do so on their own. The Elville Center refurbishes donated musical instruments, provides rental instruments, offers support to develop new music programs, partners with professional symphonies and other organizations to fund music education initiatives, and much more.
As I’ve mentioned before, now more than ever the support of interested clients, financial advisors, and community members like you is critical to the Elville Center’s continued ability to keep music alive, and in many cases help restore music to schools and the thousands of student musicians in Maryland that aren’t afforded the opportunities they desire to participate in music. During my travels to schools throughout central Maryland, I have seen firsthand the tragedy that has occurred when music programs have been deemphasized. Countless programs in existence don’t have the necessities to function properly to give student musicians the experiences they deserve. Teachers do not have their own money to pour into their programs to pay for needed equipment, supplies, and instruments. Funding for music remains extremely low and there are not enough instruments and equipment to go around for every student that wants to participate. With inflation rearing its ugly head, even more students than before cannot afford the necessities to play in band, orchestral, or choral programs.
If you’ve ever thought about getting involved and supporting the Elville Center, now is the time to do so!
Since our last newsletter update the Elville Center has donated over 80 instruments to our school music programs and organizations we support – a record number in a six-month timeframe! Just some of our many success stories of partnership and possibility are below. And, to reiterate – this would not be possible without donations from interested people like you who support organizations like the Elville Center!
Maryland School for the Blind
As I’ve mentioned before, it is always gratifying when we’re contacted requesting support to help start a music program from the ground up. That is the case with the Maryland School for the Blind (MSB), as Mrs. Lynnieh Hoffman, Music Director at the school, contacted the Elville Center requesting support in the form of donations of all types of musical instruments for its growing music program.
As mentioned on its website, the mission of the MSB is “to serve students with blindness or low-vision of all abilities from birth through 21 throughout their educational journey.” MSB provides private educational programs to students in all 24 Maryland counties from birth to age 21 who are blind or low vision of all abilities. And, as we all know music can play a pivotal part in the growth of those who have developmental disabilities.
Some very famous musicians have been blind over the years, including Stevie Wonder, Ray Charles, and Ronnie Milsap, to name a few. Ludwig van Beethovan also began to lose his hearing when he was 28 and was completely deaf at age 44.
The Elville Center was grateful for the opportunity to help this new music program and its student musicians and contributed eight electric guitars, four violins of varying sizes, two keyboards, two clarinets, and two trumpets. While Ms. Hoffman requested instruments in “fair condition,” as is always the case every instrument the Elville Center donated was fully refurbished and in “excellent” and “like new” playing condition thanks to donor support.
The Annapolis Symphony Orchestra Sponsorship and Annapolis Symphony Academy
As the Elville Center continues its support as a major sponsor of the Annapolis Symphony Orchestra, a professional orchestra in Annapolis based in historic Maryland Hall for the Creative Arts, we continue to be amazed at the depth of breadth of the ASO and all it offers its community – through its Masterworks Concert Series and other musical endeavors throughout the year; to its commitment to education by way of its Concerts for Schoolchildren Series; to hosting musicians in the classroom; and last but certainly not least, to its Annapolis Symphony Academy. The Symphony has a variety of music and educational programs for everyone.
“Music education is for all of us. Regardless of age, background or musical talent, we all benefit from these programs,” said Jose-Luis Novo, Annapolis Symphony Orchestra Music Director. “Research clearly shows that music education programs prepare students to learn, facilitate student achievement, and develop the creative capacities for lifelong success. Beyond the academic and emotional benefits of music, we also believe in the restorative powers of music. In short, music improves lives, which is why the Annapolis Symphony Orchestra offers a broad spectrum of programs.”
In July, ASO Concertmaster as well as the Annapolis Symphony Academy Founder and Director Netanel Draiblate will be stopping by our office to pick up five cellos and an oboe we have waiting for him to benefit the Academy. As you may recall, the Academy is the ASO’s tuition-free youth orchestra the Elville Center’s sponsorship supports on an annual basis. To say it is growing quickly would be an understatement! Last fall we donated 35 instruments to this very worthwhile endeavor and we will continue to put our full support behind it. For more information about the Academy please visit https://annapolissymphony.org/annapolis-symphony-academy/.
Over the past year, as an added benefit to our partnership, the Annapolis Symphony has graciously provided free tickets to several of its concerts to Elville and Associates’ clients, and that will continue into the 2023-24 season. Be on the lookout for further information from me about additional free ticket offerings from the Symphony in the fall!
Baltimore Classical Guitar Society
The Baltimore Classical Guitar Society, which offers a groundbreaking “Guitars for Change” program for at-risk youths we’ve discussed in previous charity updates, has added a new program named “Guitars for Veterans.” This new initiative is in collaboration with Perry Point VA Medical Center in Perry Point, Maryland.
The program provides veterans in its outpatient program with free acoustic guitars, lessons and accessories in a 10-week program. After the veterans complete the 10-week course the guitars will be theirs to keep.
Along with the many classical (nylon-string) guitars the Elville Center has provided the Guitars for Change program over the years, we have begun offering acoustic (steel-string) guitars to the Guitars for Veterans program. I was fortunate to catch up with our good friend, president of the Baltimore Classical Guitar Society Asgerdur Sigurdardottir, and her husband, world-renowned classical guitarist Manuel Barrueco, in April and delivered 14 fully refurbished acoustic and classical guitars for the benefit of the Guitars for Change and Guitars for Veterans programs.
Every one of those guitars I delivered was a donation from an interested person such as yourself in the Elville Center! So, if you have a guitar you would like to donate to the Elville Center, we are actively looking for classical and acoustic guitars to benefit the programs mentioned above. As always, all donations made to the Elville Center are tax-deductible and I provide tax donation letters to support your donations.
Yet another project of interest offered by the BCGS is the pilot Lullaby Project. During this program the Society paired teenage moms with Grammy-winning songwriters Cathy Fink and Marcy Marxer, and together they wrote personal lullabies for their babies. The pilot program took place in Annapolis with additional projects having taken place this past spring in Owings Mills and Essex. To view more about the Lullaby Project you can watch a YouTube video about it here – https://www.youtube.com/watch?v=Pxn6atNl9HI&t=5s
Before moving on, I wanted to share one more item about the Guitars for Change program I mentioned before that is worth repeating. The following link is a performance by some of the program participants at a recent concert of the beautiful song “Remember Me” from the hit movie “Coco.” Many of the guitars being used were donated by the Elville Center! I encourage you to watch – it will be the best three minutes of your day! You can view it here — https://www.youtube.com/watch?v=vC-hKrbQmac
Please consider donating to the Baltimore Classical Guitar Society! You can visit its website at www.bcgs.org, or you can donate to the Elville Center so we can do more to support this outstanding arts organization!
Southgate Elementary School
It is always a great day when I get to visit with Mr. Timothy Jessilonis, Strings and Band Teacher at Southgate Elementary School in Glen Burnie. “Mr. J” as they call him at the school along with the entire office staff at Southgate have a positive, infectious energy that is palpable the second I walk into the school. They are friendly, inviting, and accommodating and I always feel at home there when dropping off donations!
With a fast-evolving music program, Mr. J’s students have many needs right now and that will continue with the energy he brings to the classroom. The Elville Center provided two trumpets, two trombones, two violins and two flutes along with a much-needed drum set. The Elville Center also provided several violin bows along with some boxes of clarinet and alto saxophone reeds for the program (music programs with young students go through reeds quickly – and they are expensive!).
Mr. J remarked after our visit, “Southgate appreciates the Elville Center’s donations so much. Earlier this year, we had many students who were unable to access the music program at all, and some that were put onto instruments they weren’t in love with playing. The donations from Elville have inspired many of our students to learn great practice habits which transfer to every part of their lives. We have a record number of rising 5th grade students going into middle school as musicians this year. Starting 6th grade in music, these students have a built-in group of friends. We have great footing to begin with another record year in Southgate band and strings thanks to the Elville Center. Thank you again!”
To that I would say – “You are very welcome, Mr. J! I will see you again in the fall and am looking forward to it!”
Monarch Academy in Annapolis
As I mentioned in our winter charity update, we have partnered with Monarch Academy in Annapolis for several years, and this International Baccalaureate® (IB) Primary Years Programme World School has a rather robust inventory of instruments thanks in large part to the Elville Center’s support over the years. However, as is the case in most schools this past year, it has seen tremendous growth in its music program – my thought being with schools returning to no masks across the board and a sense of normalcy there are no barriers to children wanting to participate this year (and many teachers have that same thought). Thanks to donor support, the Elville Center had specific instruments in its inventory needed by Monarch, which included several ¾- and ½-size violins along with some full-size ones as well. We were also able to donate a much-needed saxophone, trumpet, and two excellent Pearl bell kits. Lastly, Instrumental Music Teacher Amie Brannon took me up on the charity’s offer and received some boxes of clarinet reeds and strings for violins. You will probably believe it when I say there is no funding in place for vital supplies and equipment such as reeds and strings that make these instruments function – unless the teacher pays out of pocket for them!
Sisters Academy of Baltimore
Our relationship with Sisters Academy of Baltimore continues to run in high gear, and it’s hard to keep up with these young ladies!
Ms. Alison Johnson, Music Teacher at the Academy proactively reached out to me in spring of 2022 regarding many, many needs for her growing music program. Its student musicians, whose primary focus under the guidance of the Academy is to “become agents of transformation in their families, communities and society,” maintain a laser focus on their education, which includes a “rigorous academic curriculum and holistic program that encourages each student’s intellectual, social, physical, and spiritual development.”
After replacing a set of Suzuki Chromatic ToneChimes this past fall along with about 15 other very specific needs for the Academy, this spring the Elville Center continued its work as we repaired six very important instruments with the help of our friends at The Band Shoppe in Catonsville and donated three violins, two trumpets, two flutes, two clarinets, and a saxophone.
We look forward to seeing how far this music program can go with such talented students, a dedicated teacher, and an administration that understands the importance of music education! The Elville Center will be there with Sisters Academy every step of the way!
Germantown Elementary
The Elville Center continues its support of Germantown Elementary’s band and strings programs. Over the past year these programs, under the direction of National Board-Certified Teacher Andrew Ritenour, have seen a significant uptick in its members, and according to Mr. Ritenour, “thanks to the generous donations from the Elville Center in the past, we were able to get almost every child on their first choice of instrument they wanted to play!”
With continued growth comes continued needs, and the Elville Center rounded out Mr. Ritenour’s instrument inventory with two alto saxophones, two trumpets, two flutes, and four violins of varying sizes along with several new violin bows and a new case for one of his existing violins.
“Germantown Elementary has benefited immensely from the efforts of the Elville Center for the Creative Arts. Through their efforts, Mr. Stauffer and his team have helped to place instruments into the hands of students who would otherwise be unable to participate,” noted Mr. Ritenour. “The social and academic benefits to students who are involved in instrumental music are well-known, and the Elville Center for the Creative Arts has been a partner to our school to make these benefits a reality for many current and future students. We couldn’t be more grateful to all who have supported the Elville Center and for the efforts of this team to help our students to experience a well-rounded education that is inclusive of the arts!”
The Columbia Orchestra
The Elville Center is once again proud to support and sponsor the guest artists at The Columbia Orchestra’s Family Holiday Concert and Young People’s Concert during its 2023-24 season for a seventh consecutive year. This year’s concert dates are still to be determined, but we are already looking forward to them and will be at The Jim Rouse Theatre in Columbia when they happen! Tickets can be purchased for all Columbia Orchestra concerts at www.columbiaorchestra.org.
The Elville Center for the Creative Arts needs your support to further its important work and help develop new relationships and further existing ones that are depending on the charity. Every one of the refurbished instruments, pieces of equipment, and supplies the Elville Center provides music programs along with educational initiatives we support are not possible without donor support. We need those instruments that you don’t use anymore and are taking up space. And, most importantly, we need your monetary support to help refurbish those instruments, purchase supplies, and facilitate cultural learning experiences for student musicians. A clarinet averages about $160 to refurbish; a saxophone – typically $230; and a violin – $130. This does not include new bows and cases we purchase to go along with the instruments being refurbished so they’re like new for their new homes!
As a 501(c)(3) non-profit corporation, all donations made to the Elville Center are tax-deductible. To donate or learn more about the Elville Center for the Creative Arts, please visit www.elvillecenter.org, contact Jeff Stauffer at jeff@elvillecenter.org, or call 443-393-7696 x117 (Jeff’s office line). We appreciate and value your support!
By: Chris Wehner, CPA, CFP – Gross, Mendelsohn & Associates
The SECURE 2.0 Act of 2022 (“Secure 2.0”) was passed on December 29, 2022, and focuses primarily on enhancing retirement plan incentives for individual taxpayers.
Let’s review some key provisions of the bill and how they could impact you and your business.
Automatic Enrollment in Employer Retirement Plans
Human psychology is fascinating, and the Secure 2.0 Act of 2022 plays into that by automatically enrolling employees in their employers’ retirement plan whenever the employee is first eligible to participate. This is not a new concept, but it hasn’t been legislatively mandated before now.
Employees may opt out of participation, but studies show that more employees participate (fewer opt-out) when automatically enrolled than when employees need to opt-in to participate.
The default election term is that certain employers will withhold a minimum of 3% and a maximum of 10% of an employee’s compensation and contribute that to the plan. This withholding percentage will increase by 1% annually until it reaches a minimum of 10% and a maximum of 15%. All current 401(k) and 403(b) plans are grandfathered.
The following employers are not subject to this automatic enrollment provision:
- Employers with fewer than 10 employees
- Businesses that have not been in business for more than three years
- Churches
- Governments
This provision is effective for plan years beginning after December 31, 2024.
Retirement Savers Match
A nonrefundable credit is currently available for certain individuals who contribute to an IRA, employer plan, or ABLE account. This credit is repealed and replaced with a federal matching contribution that must be deposited into a taxpayer’s IRA or retirement plan. The match is equal to 50% of the individual’s contribution up to $2,000 per individual. The amount phases-out for taxpayers who file a joint return and have income between $41,000 and $71,000 ($20,500 and $35,500 for taxpayers who file single or married filing separate; $30,750 and $53,250 for head of household filers).
The Treasury Department will be advertising these changes in a marketing campaign to increase public awareness of this benefit.
This provision is effective for taxable years beginning after December 31, 2026.
Required Minimum Distribution Age Change
Secure 2.0 increases the maximum age for individuals to begin withdrawing retirement plan funds to 73 beginning on January 1, 2023 and increases it again on January 1, 2033 to 75. Previously, the SECURE Act of 2019 increased the age from 70 ½ to 72.
Retirement Plan Catch-Up Limits
For 2023, individuals 50 or older may contribute an additional $1,000 to their IRA accounts; the maximum allowed is $6,500 for those under 50. Individuals over 50 may also contribute an extra $7,500 to employer retirement plans for 2023; the maximum allowed is $22,500 for those under 50. Secure 2.0 indexes this catch-up contribution to inflation.
This indexing of the catch-up contribution amounts is effective for taxable years beginning after December 31, 2023.
Certain older employees who participate in their employer’s retirement plan are also allowed to make catch-up contributions. Secure 2.0 increases these catch-up contributions to the greater of 1) $10,000 or 2) 50% more than the regular catch-up amount in 2025 for individuals who have attained ages 60, 61, 62 and 63. The increased amounts are indexed for inflation after 2025.
These retirement plan catch-up contribution amounts are effective for taxable years beginning after December 31, 2024.
Student Loan Assistance
Student loan debt is hitting younger employees hard, hard enough that many aren’t saving for retirement and devoting whatever they can to paying down that debt. Secure 2.0 allows employers to make matching contributions to retirement plans with respect to qualified student loan payments. A qualified student loan payment is any debt incurred by the employee solely to pay qualified higher education expenses of the employee.
This section is effective for contributions made for plan years beginning after December 31, 2023.
Military Spouses Retirement Plan Eligibility
Many times, spouses of members of the military aren’t able to satisfy the minimum eligibility requirements required to become participants in employer plans or vest in employer contributions. Secure 2.0 provides small employers with a tax credit with respect to defined contribution plans if they satisfy all of the following requirements:
- Make military spouses eligible for plan participation within two months of their hire date,
- Make the military spouse eligible for any matching or non-elective contributions they would have been eligible for had they satisfied the vesting requirements of having two years of service and
- Make the military spouse 100% immediately vested in all employer contributions.
The credit is equal to the sum of $200 per military spouse and 100% of employer contributions up to $300 for a maximum credit of $500. The credit applies for three years with respect to each military spouse that is also not classified as a highly compensated employee.
This section is effective for plan years beginning after December 29, 2022.
Retirement Plan Participation Incentives
Many employer-sponsored retirement plans are subject to nondiscrimination testing which, if employee participation is low, can affect how much other employees may contribute to the plan. Employers are now allowed to provide de minimis financial incentives to employees for participating in employer-sponsored retirement plans. These incentives must be paid with non-plan funds.
This section is effective after December 29, 2022.
Early Distribution Penalty Waiver
Normally, if an individual withdraws funds from a qualified plan or IRA and they are younger than 59 1/2, the IRS would assess a 10% penalty on the amount of that distribution unless it was for certain qualified transactions like a first-time home purchase or medical expenses. Secure 2.0 allows an exception for certain distributions used for emergency expenses, which are unforeseeable or immediate financial need relating to personal or family emergency expenses and have the following terms:
- The early distribution may be taken only once per year,
- The distribution can be no more than $1,000 and
- The taxpayer may repay the distribution within three years.
If a taxpayer chooses to repay the distribution, no other distributions for emergency expenses may be taken during the repayment period unless full repayment has occurred.
This section is effective for distributions made after December 31, 2023.
Automatic Portability of Participant Accounts
Many participants of employer-sponsored retirement plans who have terminated employment with the sponsor leave their accounts with their former employer’s plan without rolling over the funds. Employers have had the option, depending on the balance in the plan, to either distribute those funds to participants immediately or roll the balance out of the plan and into an IRA for the participant after the participant’s termination of employment. Third-party administrators may now offer these services to automatically transfer accounts that satisfy the account balance requirements.
This section is effective for transactions on or after December 29, 2023.
Starter 401(k) Plan
Secure 2.0 allows employers that do not sponsor a retirement plan to create a plan that would generally require that all employees be automatically enrolled and contribute at a rate of between 3-15% of compensation.
This section is effective for plan years beginning after December 31, 2023.
Qualified Distribution of 529 Funds to Roth IRAs
Parents and caregivers of children may face uncertainty about whether to contribute to a 529 plan because, previously, those funds could only be used to fund qualified educational expenses. Secure 2.0 now allows beneficiaries of 529 college savings accounts to roll over a maximum of $35,000 over their lifetime from their 529 account to a Roth IRA.
These rollovers would be subject to Roth IRA annual contribution limits and the 529 account must have been open for more than 15 years. This provision may eliminate some of the hesitancy surrounding contributing to an account that may ultimately never be utilized if the child doesn’t go to college or have other qualified educational expenses or if the child secures scholarships that substantially pay for their higher education.
This section is effective with respect to distributions after December 31, 2023.
Resolution to Erroneous Excess Distributions from Retirement Plans
Many individuals receive more than they anticipated from a qualified plan like a 401(k) or IRA. The process for correcting these mistakes can be cumbersome and fiduciaries may require the individual to repay the plan for the excess amounts distributed, which could be a substantial amount if the error isn’t caught for several years.
Secure 2.0 allows plan fiduciaries to decide whether to recoup overpayments made to retirees. If plan fiduciaries decide to recoup overpayments, limitations and protections apply to protect innocent retirees.
This section is effective after December 29, 2022.
Penalty on Shortfall in Required Minimum Distributions
The penalty for failing to take the required minimum distribution amount from retirement plans has been reduced from 50% of the shortfall to 25%. If the failure is corrected timely, the penalty is reduced to 10%.
This section is effective for taxable years beginning after December 29, 2022.
There are a number of other provisions in the bill that are not summarized above, but most are aimed at making saving for retirement and withdrawing from tax-favored plans easier for individuals and participants.
Need Help?
Contact us here or call 800.899.4623.
Chris Wehner, CPA, CFP, of Gross Mendelsohn & Associates helps families and businesses develop and execute tax strategies that help them meet their financial goals.
Deed Recording Scam – Beware!
By: Rebecca Timonen – Paralegal and Asset Alignment Coordinator – Elville and Associates, P.C.
If you recently purchased a home or transferred real estate into your trust, beware of scammers!
Scammers will often mail an official looking letter that will try and fool you into paying $83 -$109. The letters are typically labeled in bold as a “Recorded Deed Notice.” Sometimes they may look like a bill because there is a record ID number, along with a service fee and a “respond by” date. Often the letter/bill states that the homeowner should obtain a copy of their property assessment profile that includes a copy of their deed or recorded title. There are usually details about the property, including address, parcel number, and date of purchase or transfer, making it appear official. There might even be a payment slip and envelope to mail a payment.
YOU DO NOT NEED to pay an exuberant amount of money for documentation of your home.
Whenever a real estate transaction takes place, a deed will be recorded in the Maryland Land Records. It is important to record your deed to establish a clear title – if this is not done, then it could result in high legal fees to perform title search.
While recording a deed is necessary, the potential downside is that information then becomes public record through the Maryland Land Records. In particular, your name, address, price, and a description of the property is available online at https://mdlandrec.net/main/index.cfm. Scammers use it to try and convince you that you need to pay top dollar for certain documents.
To combat this problem, it is important to educate yourself, so that you will recognize the scam when you see it.
A solicitation will come to you in the mail. If you get a solicitation with the above information, do not pay any money. The deed to the property is mailed to you free of charge after the deed gets recorded. If at any time you need a copy of your deed, you can contact the County Clerk who will issue a copy for much less than what the scammers are asking. In general, any solicitation asking you to pay money after you purchase property or transfer it into your trust is a scam. If you have any questions about a deed prepared by our office, please contact us at (443) 393-7696. If you still feel uncertain, you can also contact the County Clerk for further guidance.
Rebecca Timonen is an experienced paralegal here at Elville and Associates whose primary focus is on deed preparation and estate planning document drafting. As it relates to deeds, she drafts, reviews deeds drafted by others, and is a liaison between the firm and the title attorney. She also coordinates out of state deed preparation requests. Once deeds are signed she records them with the various counties, saves them for the firm’s records and returns recorded deeds to clients.
Recently, Rebecca was promoted to the very important position of Asset Alignment Coordinator for the firm as well.
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What Is a Spendthrift Trust?
What Is a Spendthrift Trust?
A spendthrift trust protects beneficiaries who may need help managing their finances responsibly. The trust preserves the beneficiary’s inheritance for use over an extended period.
Spendthrift trusts work by giving a trustee, rather than the beneficiary, the power to make financial decisions. The trustee manages the trust assets and distributes funds to the beneficiary for their needs and support.
The trust’s terms outline the trustee’s discretion in making distributions, which can be limited or flexible. The creator of the trust, or grantor, may leave the timing and amount of distributions up to the trustee. Or, they may opt to establish a fixed schedule.
These restrictions prevent the beneficiary from squandering the assets.
According to the Survey of Consumer Finances, the median inheritance is $69,000; the median for trust fund wealth transfers is $285,000.
Many individuals planning their legacies wish to provide for their families and loved ones. Yet an Ohio State University study determined that those who receive an inheritance spend half. One-third of those who received an inheritance spent it all within two years and had negative savings. That said, a typical inheritance may not provide sustained financial security to beneficiaries.
Creating a spendthrift trust for your loved one can limit their spending and protect your wealth. While this type of trust may come at the expense of their autonomy, it can provide them with greater financial security.
The Spendthrift Clause
An essential feature of a spendthrift trust is the spendthrift clause, which protects the contents of the trust. Under the clause, the beneficiary cannot satisfy debts with their interest in the trust. Should the beneficiary have debts or a civil judgment against them, the creditors cannot obtain the trust assets.
Why Would Someone Create a Spendthrift Trust?
You may want to provide for a loved one but have concerns about who they will use the money. This is where a spendthrift trust can serve as a suitable option.
Spendthrift trusts can benefit the following individuals:
- Children – Parents often have concerns about how their minor and young adult children will use an inheritance. Minors typically need more life experience to make independent financial decisions. Some parents want to provide for college-age adult children but worry about giving them full access to the funds.Parents can determine when their children receive the funds (for instance, when the child reaches a certain age).
- People who are not good with money – Some adults struggle with financial planning and impulse control. For these individuals, a spendthrift trust can ensure a steady source of support.
- Vulnerable individuals – People who are susceptible to external influences that threaten their financial well-being can benefit from the security and structure of a spendthrift trust. If your loved one has been taken advantage of before, you may worry that they will be exposed to improper influence again.
- Those with addiction disorders – A spendthrift trust could prevent a beneficiary from exhausting the trust fund to support an addiction to gambling, illicit substances, or compulsive spending.
What Are the Benefits of Spendthrift Trusts?
Spendthrift trusts have several benefits:
- Shielding assets from creditors and lawsuits.
- Providing your loved one steady income stream without allowing them to exhaust the trust through overspending. This can be particularly helpful if you have concerns about your loved one’s ability to make money independently.
- Preserving generational wealth and preventing your loved one from blowing a significant portion of their inheritance.
Encouraging responsible money habits. Providing a younger person with full access to the trust only after they turn 21 can help them develop budgeting skills. Likewise, you may choose to limit them to a certain amount of monthly income.
Consult With Your Attorney
If you want to learn more about creating a spendthrift trust to provide for your loved ones, consult the estate planning attorneys at Elville and Associates. They can help you decide whether a spendthrift trust is right for your unique situation, answer your specific questions, and help create a path forward for your planning needs. Please contact Community Relations Director Jeff Stauffer at jeff@elvilleassociates.com, 443-393-7696 x117 or Managing Principal and Lead Attorney Stephen Elville at steve@elvilleassociates.com, 443-393-7696 x108 to arrange for your free initial consultation.
“Tall” Estate Planning
By: Stephen R. Elville, J.D, LL.M., Managing Principal and Lead Attorney – Elville and Associates, P.C.
Runners are told to “run tall” to have the best technique; swimmers are instructed to “swim tall” so that they stretch out in the water for optimal performance; meditators are advised to “sit tall” for the best composure and results; actors and public speakers are trained to “be tall” in their posture, and in their thinking and imagination. Are you “tall” in your estate planning? Do you have a “tall” estate plan and a “tall” collaborative advisory team for your planning, or is your planning in need of physical therapy, training, and a fitness test? Whether you are tall or less than tall physically is of no consequence – anyone can have a tall estate plan with the proper commitment, counseling, and continuing legal education, along with continued diligence and updating throughout your lifetime. As this glorious latter part of the summer begins, consider the possibility of growing to new heights in your estate planning for planning that works, both for your lifetime and for your legacy.
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