A Roth Opportunity

Historically, many individuals who would be good candidates for a conversion from a traditional IRA to a Roth IRA were prohibited from making the conversion because of income limitations. Current legislation is providing a window of opportunity in which any income tax limitations on Roth conversions have been eliminated. The best candidates for a Roth IRA conversion would fall in one of the following categories:

• Individuals who are always in the highest income tax bracket.
• Those individuals who may be subject to a federal estate tax at death.
• Lower income tax bracket individuals who are likely to be in a higher income bracket in the future.

Roth IRA’s offer the following advantages over traditional qualified plans [IRA, 401(k), etc.]:

1. If you wait 5 years after setting up your Roth IRA and are age 59½, you can exclude any withdrawals from gross income.
2. No contributions are allowed to a traditional IRA after the age of 70½ but contributions can be made after 70½ to a Roth IRA by any individual who has employment compensation.
3. There are no required distributions from a Roth IRA after age 70½.
4. An individual who sets up a Roth IRA with an IRA conversion or after tax income will reduce the size of their estate subject to federal and/or state transfer tax.
5. If you set up a Roth IRA conversion in 2010, you can elect to report all of the income in 2010 or have the income taxed ratably over the years of 2011 and 2012.  Donors who have charitable deduction carry forwards should elect to have the Roth IRA conversion taxed entirely in 2010.

Donors who wish to give their entire IRA to charity at death, or at the surviving spouse’s death, should not consider converting their traditional IRA. If you decide to convert to a Roth IRA, it will trigger income tax on the conversion amount. There are ways to make offsetting or partially offsetting charitable gifts in the same year to minimize the income tax consequence of the conversion. Donors who itemize deductions and have appreciated property could gift the appreciated property in the year of the Roth IRA conversion.

If you have questions please contact your tax attorney or CPA for additional information.

. . . equipping PRMC to be “Simply the Best”

Wheelchair project gets Rotary Boost

The PHF joined PRMC in promoting a special way to replace wheelchairs - advertising. It was noted that the wheelchair fleet needed some help and the Foundation suggested that local businesses might be interested in advertising on the new wheelchairs. A total of $4,250 was needed to replace 18 wheelchairs. Several businesses gave $250-$500 and appreciated the opportunity to advertise on the wheelchairs. The Pratt Rotary Club stepped up and gave $1,000 and was awarded a $1,000 matching grant from Rotary International for the project. Between the two Rotary sources $2,000 was made available to replace eight wheelchairs. So the next time you come to PRMC, note the new advertising on the wheelchairs and compliment the businesses or clubs who helped. We are certainly grateful for their partnership.

Another Successful Festival of Lights

The 2009 Festival of Lights (FOL) program was a success. It did not break the 2008 record of $13,511 in gifts from 193 donors, but it was very close. The 2009 FOL total was $13,425 from 187 donors. The goal was to purchase a new Infant Warmer for the PRMC Birthing Suites. The vendor had recalled the current Infant Warmer and made no compensation for its replacement. Consequently, funds were needed to replace this equipment. About $20,000 was needed, so the Foundation will provide the difference of around $5,500. The PHF is grateful for all those who made FOL gifts and made this acquisition possible.

PRMC in the Future

The process of updating the hospital facility is still the focus of the PRMC Board, the Pratt County Hospital Board and the PRMC administration. The hospital will develop a plan to maintain its high standards of compassionate medical care in an aging facility owned by the citizens of Pratt County.

“The Pratt Health Foundation promotes health and raises funds to provide economic support for health care in south-central Kansas through Pratt Regional Medical Center.”

A publication of the Pratt Health Foundation (PHF)
203 S. Main * Pratt, Kansas 67124
( PHF and PRMC are 501(c)3 charitable healthcare organizations.)