ewish Pre SPECIAL ISSUE ON TAX TIPS VoLLXXVI
NE HIST SOCIETY 1500 R ST LINCOLN NE 68508-1651
No. 21 Omaha, NE
19 Shevai, 5759
IRA, pension plan distributions may subject heirs to double tax
February 5,1999
YJO Tu B'Shevat a first by Pam Monsky Federation Communications Director
Tu B'Shevat is celebrated on the 15th day of With the introduction of the Roth IRA, tax plan- the Hebrew ning has become even more complex for retirement month of Shedistributions at death. If you own substantial vat. It includes retirement accounts, you should consult your tax tree planting advisor on this particular issue of and eating the naming beneficiaries. seven fruits During 1999, The Federation . mentioned in Foundation plans to sponsor a semi- c o n n e c t i o n nar on this important subject. with the land If you would like an invitation, of Israel. Folplease call me or Foundation lowing lunch, Assistant Cyrila Kotyza, 334-6439. Julie Ginsberg Tax Briefs and her daugh•Beginning in 1999, the IRS ter Eden Rose, requests taxpayers to write checks to create a seed the "U.S. Treasury" not to the "Internal Revenue picture. Service." •Beginning in April, 1999, the optional standard mileage rate for business use of an automobile will be reduced from 32.5 cents to 31 cents. The rate of 32.5 cents applies for all of 1998. •The mileage rate for the charitable use of a passenger automobile is 14 cents per mile, with no planned reduction. •Effective now through April 10, the local IRS office located at 106 So. 15th St., room 109, will be open on Saturdays from 8:30 a.m. to 12:30 p.m. •Homeowners filing joint returns may exclude up to $500,000 ($250,000 for,singles) of gain on the sale of a principal residence.; This full tax break may be taken every two years; however, if the home is sold before having held it for two years, a Julie Phillips (right), organized crafts for the partial exclusion may be taken based on the num- children. Leslie Vann and Michael Vann ber of months held as the numerator and 24 made trees with branches, nests, birds and eggs, and finished them off with pictures of months as the denominator. •One of the hottest topics in Congress is to elimi- 'mitzvot' hanging' from the branches. nate the so-called "marriage penalty" which results in working married couples paying additional taxes (More Tax Tips starting on page 6)
by Martin C. Ricks, Endowment Director, The Foundation of the Jewish Federation
If your children inherit any funds remaining in your Individual Retirement Account (IRA) or pension plan, they may be hit with double taxes. The stock market increase in the '90s haB resulted in many of you holding IRA and 401 (k) accounts with significant balances that will grow even larger with astute investing. Conversion to a Roth IRA will help the situation, but income taxes must be paid for the year you convert and not everyone is eligible to make the conversion.. Many factors need to be considered in the decision to convert regular IRA's to Roth IRA's. How high could these double taxes be? Potentially, 75 percent and possibly more if you consider state taxes. : Why? Retirement benefits included in your estate are subject to both: 1) estate taxes on your federal estate tax return, and 2) income taxes on the Form 1040 of the beneficiary/recipient. The estate tax portion is generally paid with the filing of the estate tax return; the income tax portion is paid over the years of distribution from the retirement plan. Non-retirement assets received by your heirs through a bequest are normally subject only to estate taxes: . What can you do? If you plan to leave assets,, to both your, heirs and the Jewish Federation, The Foundation, synagogue, or other non-profit institutions, you may save taxes if you give "other assets" to the heirs and name the charity as the beneficiary of your IRA, 401 (k)or other retirement plan. The result will mean more money to your heirs by not having to pay income tax on the retirement distributions and the charity will receive the retirement assets (IRA, 401 (k), etc.) free of both estate and income tax.
Blumkin Home eliminates waiting list by Lenorai Lancaster, Executive Assistant, Jewish Senior Services
Currently, rooms are available at the Rose Blumkin Jewish Home. Because the rehabilitation staff offers seniors a therapeutic work plan which "gets them on their feet" and functioning as independently as possible, short-term residents are returning to their own homes more quickly. ' All residents of the facility have the opportunity to receive an extremely high level of nursing care along with days filled with good friends, lively programming and Jewish torn (atmosphere). Each resident receives a personalized care plan that is tailor made for their needs. This includes a full array of recreation programs and social events -outside trips, parties, sing-a-longs and learning sessions with local rabbis, teachers and "cultural • mavens (experts)." . Seniors have the chance to learn about computers, (including e-mail), ceramics, cooking classes and our newest program-Art Expressions. The RBJH nursing staff is gifted and knowledgeable about caring for individuals who suffer from either Alzheimer's or some form of dementia. Patience and the ability to soothe are important parts of assessing a person's needs. The dietary department works along with nursing in an effort to help residents maintain their weight status. Often with Alzheimer's disease, residents forget how to eat, and tender encouragement is needed. Mealtimes are adapted to residents needs and, in fact, each person receives a specialized menu when necessary.
It is extremely important that Jewish heritage be a viable part of life at the Blumkin Home. Weekly religious services and discussion groups, Shabbat candlelighting, holiday baking and mealtimes are just some of the ways we live our traditions. The social service staff advises and guides residents and families through the application process, residents rights and the ability to utilize the "barik" with the Home. Residents are encouraged to make their own choices regarding activities, time alone, and friendships. This caring environment offers seniors the opportunity to mend both physically and spiritually. Community volunteers and the active Auxiliary, make it a point to welcome newcomers and be a vital part of the recreation program. The Omaha Jewish community is truly blessed to haye such a fabulous facility. Call us for short or long-term stays, for rehabilitation after surgery or illness. For more help, or information, contact Shane Kotok, Director of Community Outreach Services, at 334-6529.
JUDAIC ATHON Sunday, February 14 attheJCC 7-9:15 p.m. Adults,$7; Students/Srs., $5 See insert for details
Jill and Bruce Baron with son, Jacob, were part of the seder held last Sunday at Beth El Synagogue. More than 70 people attended the event to celebrate the new year of the trees.
Rabbi Paul Drazen led the seder, whi included red and white wine and a set plate with nuts, figs, dates, wheat crack avocados, raisins and almonds.