The Blitz Newsletter - Special COVID-19 Issue

Special COVID-19 Issue

Information on Tax and Estate Planning from the Masonic Charities of the Grand Lodge of Pennsylvania Due to the COVID-19 crisis, The Blitz will be issued monthly until further notice.

All travel and events are suspended until further notice.

A NATION IN CRISIS What Are We Doing at Our Masonic Villages?

Welcome to the new normal. I am not sure where you are, but I assume it isn’t on the beach, at a ballgame or even at a barbeque with friends and family. Life is on hold while we wait this crisis out. As a person with high risk for cardiovascular disease, I am working from home on my computer.

I take walks each evening and mow the lawn. I enjoy seeing the birds and chipmunks frolic in the yard with spring now in the air. We must stay positive and caring during this time of uncertainty.

My heart goes out to those affected by this silent killer. I am especially grateful to those on the front lines helping to address this crisis,

including the nursing, housekeeping, dining and other essential staff at the Masonic Villages who put themselves at risk each day to keep our residents nourished, cared for and safe. They are our unsung heroes. In the near future, you will be receiving a request for the opportunity to support our Masonic Villages staff and their families as they persist during this crisis. Like the first responders and their families who were affected by 9-11, we ask, if you can, to consider helping those employees who carry on the mission of this great fraternity to care for our seniors. God bless, and keep the faith.

2. Non-itemizer Donation Relief - Contributions of up to $300 are now allowed as an “above the line” deduction starting in 2020. This permits individuals who would otherwise get no tax benefit for charitable contributions due to the inability to itemize to realize a tax benefit. So, everyone who files a tax return should consider giving at least $300 to charity this year.

Some Income Tax Highlights from the New Cares Act The economic stimulus provisions of the CARES Act are crucial to saving our economy during this crisis. There are a couple of provisions that you should be aware of in planning your own financial affairs when we finally get out from under this locked down economy. Here are the highlights from the Act that I find most relevant for charitable planning: 1. No RMD in 2020 - For the current year, the requirement that anyone age 70 ½ (or age 72 beginning this year) or older receive a required minimum distribution (RMD) is suspended. Many charities, including our charities, rely substantially on qualified charitable distributions (QCDs), which are tax-free for donors. Although directing an RMD to charity as a QCD to save on tax is not required this year, it is not forbidden to request a distribution from your IRA to charity anyway and avoid the tax. For many, this method may still be the best way to give to charity if you don’t itemize your taxes.

3. Dollar-for-Dollar Deductions for Itemizers - For taxpayers who do itemize deductions, the Adjusted Gross Income (AGI) limitation on charitable contributions is removed for 2020.

The current limitation is 60% for cash gifts. For 2020, individual taxpayers can deduct charitable contributions up to 100% of AGI. Any additional contributions not deducted in 2020 can be carried forward to offset income in the future for five years. For those wanting to make a large cash gift to their favorite charity or to fund a charitable gift annuity (CGA) or charitable remainder trust (CRT), this is the year. In fact, the largest cash gift in Masonic Charities history for The Masonic Library and Museum of Pennsylvania was received in 2005 when an anonymous Brother and his wife gave $1 million from his IRA to the Masonic Charities at the recommendation of his accountant since he received a 100% dollar-fordollar deduction against his contribution. For anyone age 59 1/2 or older, this gift strategy may offer a once in a lifetime opportunity.

4. Roth Conversions - In the last issue of The Blitz, I discussed the use of the Roth conversion as a tax planning tool for your Traditional IRA in light of the limited 10-year distribution rule for inherited IRAs. With the stock market in crash mode this year, this could be a unique opportunity to convert some of your Traditional IRA to your Roth IRA at deflated values. Talk to your financial advisor about this strategy if you are 59 ½ or older.

How We Can Keep In Touch With travel nonexistent and face-to-face meetings on pause, we must do our best to keep in touch during these trying times. Therefore, I am proposing several ways for you to interact with me and the Office of Gift Planning team until life returns to normal.

1. For personal questions on charitable giving, estate planning or how to reach a professional advisor, please call our office at 1-800-599-6454 or email me at ablitz@masonicvillages.org.

2. In lieu of our receptions around the country, you can request information in the same manner above. We have also recently developed several new information pieces on CGAs, ways for remembering the Masonic Charities in your estate plan and how an IRA to CRT can benefit your loved ones.

3. Watch my video debut of the weekly Blitz Clip; timely tax-saving, charitable and estate planning tips, at www.masoniccharitiespa.org. This may be the new normal for communicating for the foreseeable future. Also, if you have any specific topics you would like me to cover, please email me your request.

4. I have heard from several people who are anxious to have their estate plan done, which is not uncommon in times of crisis.

We are investigating whether to allow online estate planning with the proviso that you seek counsel to assist you with completing your estate documents. I am hopeful to have more information on this topic in our next issue of The Blitz. In the meantime, if you are interested in participating in our trial run for online estate planning, please email me to sign up for this offer.

5. Any information provided above can also be requested through your local gift planner: - Heather Bubien in Western PA at hbubien@ masonicvillges.org - David Whitenack in Central PA at dwhitena@ masonicvillages.org April 2020 - Joyce Michelfelder in Eastern PA at jmichelf@ masonicvillages.org.

I hope to have a more entertaining issue of The Blitz for our May issue. Stay safe, and I hope to see you at one of our upcoming videoconferences or a future luncheon once this crisis has passed.

1-800-599-6454 | MasonicCharitiesPa.org

Masonic Charities One Masonic Drive Elizabethtown, PA 17022

Special COVID-19 Issue

As Chief Gift Planning Officer for the Masonic Villages in Pennsylvania, Alvin H. Blitz, Esq., serves the Masonic Charities of the R.W. Grand Lodge of Pennsylvania, which consists of the Masonic Villages, the Masonic Children's Home, the Pennsylvania Masonic Youth Foundation, the Masonic Library and Museum of Pennsylvania and the Masonic Charities Fund. Attorney Blitz holds a Bachelor of Science degree from the University of Scranton, a Master of Arts degree from Fairleigh Dickinson University, and a Juris Doctorate from Dickinson School of Law. He has given estate planning seminars throughout the country and is a member of Carlisle Lodge No. 260, Carlisle, Pa. Contact Alvin Blitz: 1-800-599-6454 or ABlitz@masonicvillages.org