Dear friends,
A growing number of people are writing or updating their estate plans because of the pandemic. If you are updating your plans, we would be honored if you would consider making a planned gift to the Medical University of South Carolina. A planned gift through your will, trust, retirement account or life insurance policy is an easy and powerful way to leave a legacy.
As we enter the last quarter of the year, I also want to share how the Coronavirus Aid, Relief and Economic Security (CARES) Act may affect you.
- Waiver of penalties when retirement funds are used for coronavirus purposes: The 10% tax penalty will not apply if you are under 59 ½ and need to withdraw money from your retirement plan to pay for treating COVID-19.
- New charitable deduction for non-itemizers: Taxpayers who take the standard deduction can claim a charitable deduction of up to $300 in 2020.
- Required minimum distributions waived: There are no required minimum distributions from retirement accounts in 2020. If you are 70 ½ and older, you may still take advantage of a charitable IRA rollover.
- Higher deduction limits: For 2020 only, the CARES Act allows itemizers to deduct contributions up to 100% of their adjusted gross income. It is usually capped at 60%.
- Increased deduction limits for corporations: The contribution limit for corporations has been raised to 25% of taxable income this year.
If you have included MUSC in your estate plans, don’t forget to let us know. We want to celebrate and acknowledge your gift and make sure it is designated properly. Thank you for your continued support in changing what’s possible.
Stay well and we look forward to seeing you in person once again,
Linda
