Legacies 2nd Quarter 2023

Legacies

A publication of the United Methodist Foundation of Louisiana

2nd Quarter 2023

SCHOLARSHIP ENDOWMENTS: Foundation Helps Students Answer “The Call”

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New RMD Rules for 2023

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48th Anniversary Celebration

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Rev. Lee Peyton, a retired engineering professor turned Episcopal priest, has a special appreciation for academic excellence. He’s a preacher’s kid from Louisiana, worked 25 years in engineering at the University of Missouri and is now pursuing research at Union Theological Seminary of New York, N.Y.

With his background, it makes sense that he established an endowment at the United Methodist Foundation of Louisiana for a scholarship to two worldclass seminaries.

Named for his parents, the Rev. Robert L. and Elizabeth Peyton Memorial Scholarship Fund provides a $2,500 scholarship annually to any student who has been approved for seminary study by the Board of Ordained Ministry in the Louisiana Annual Conference, to attend either Candler School of Theology at Emory University in Atlanta or Union Theological Seminary.

“As a lifetime professor and researcher, I really appreciate and value a school with the academic excellence that these two seminaries provide,” Lee said. “Not only were they my father’s and my alma mater, but they are also highly recognized internationally, and I want to incentivize future pastors from Louisiana to enroll there.”

Lee’s father, Rev. Robert L. Peyton, Sr., was a beloved Methodist minister known as “Brother Bob” to his friends and congregants. He received a Master of Divinity degree from Candler in 1943. For 68 years he served churches first in Mississippi and Texas, and then in the Louisiana Annual Conference. He continued active ministry in many capacities well into his 90s. He died in 2011 at the age of 95.

Elizabeth Peyton, Lee’s mother, taught elementary school and worked closely with her husband in ministry. She and Robert were married for 68 years and lived in retirement in Arcadia, La., for 28 years. Elizabeth passed in 2013 at the age of 91. This year, Elise Burch of Monroe received the scholarship. She is a lifelong member of St. Paul’s United Methodist Church of Monroe and a 2022 honor graduate of the University of Louisiana at Monroe.

Elizabeth and Rev. Robert L. Peyton, Sr.

2023 Board of Trustees

Omer Davis

Interim Chairman

Dr. John R. Black

L. Nettles Brown

Rev. Clifton Conrad

Rev. Jo Ann Cooper

Joe Crouch, Jr.

Omer Davis

Rev. Doug deGraffenried

Bobby Fahey

Drew Kennedy

Bob Kimbro

Sandra Kuykendall

Eunice Val Lavigne

Richard Lewis

Troy Searles

Rev. Drew Sutton

Dianne Wilkinson

Chris Spencer President

Scholarship Endowments

cont’d from Page 1

She says that mission work truly warms her heart, and she has served on a multitude of missions, from Mexico to Guatemala, to the Ozark Mountains. Most recently, she was serving as Congregational Care Coordinator at St. Paul’s, visiting homebound and hospitalized members and assisting with worship services.

Burch will begin work toward her Master of Divinity at Candler this fall. She plans to become an ordained minister and help others find their calling, the same way that her church and mission work have helped her find hers.

“I have always felt a call to the ministry,” she says. “I believe being ordained will allow me to bring others closer to God through mission. I want to do for others what the church has done for me.”

Setting up an endowment at the United Methodist Foundation of Louisiana is easy. The staff handles all the paperwork and filing, and there is no cost to the donor, other than the initial gift.

There are a few things to consider before contacting the Foundation to set up an endowment. First, donors must decide how much money they want to donate. Anyone may add to the endowment at any time.

Next, donors must decide how they want the income to be used. They can choose

a specific school, area of study, where the recipient is from and other criteria. However, the more specific the donor is with the criteria, the narrower the pool of qualified students becomes.

Peyton has periodically added to his endowment to help it grow more quickly. As assets grow, the income from the fund will be used to either provide multiple scholarships or increase the scholarship stipend. He hopes to increase the award amount in the future to provide more incentive for students to enroll. He says, “It’s rewarding to me to know I’m helping make a little difference in a student’s life.”

Meanwhile, Burch is excited to begin classes at Candler in August. “This scholarship will really help me afford the cost of living in Atlanta and the tuition, so I am thankful for your willingness to help students!” she claimed.

A scholarship endowment at the Foundation is a lasting gift that will benefit a student committed to the Methodist faith, who may need help answering God’s call. For more information on scholarship endowments, please contact us at information@umf.org or 225.346.1535

To learn more about applying for a Foundation scholarship, go to umf.org/ scholarships

Phone: (225) 346-1535

Email: information@umf.org

Web Addresses: www.umf.org

www.umfgiving.org

Legacies Editor: Kelly Johannessen kellyj@umf.org

“I know I am called to minister the Word of God to all people through mission work,” says Elise Burch, recipient of the Foundation’s Robert & Elizabeth Peyton Memorial Scholarship to Candler School of Theology in Atlanta.

New RMD Rules for 2023

Dear Savvy Living,

What are the new rules on required minimum distributions from IRAs and 401(k)s? I will be 72 this year and want to be clear on what I am required to do.

Under the SECURE 2.0 Act signed into law in December 2022, there are several new rules that affect required minimum distributions (RMDs) from traditional Individual Retirement Accounts (IRAs), 401(k)s and other tax-deferred retirement accounts. These changes increase the RMD age and lower the penalty for failing to take a withdrawal.

New RMD Rules

As of January 1, 2023, the SECURE 2.0 Act increased the age for starting RMDs from 72 to 73. This is applicable if you’re turning 72 on or after 1/1/2023. In 2033, the starting age increases again to age 75. So, if you turn 72 in or after 2023, you can delay your RMDs one more year, allowing the funds in these accounts to grow tax-free longer.

At age 73, you must start taking annual RMDs from the taxdeferred retirement accounts you own and pay taxes on those withdrawals. Distributions are taxed as ordinary income based on your tax bracket.

There are, however, a few exceptions to the RMD requirement. Owners of Roth IRAs are not required to take a distribution unless the Roth IRA is inherited. Beginning in 2024, Roth RMDs will not be required for any Roth IRAs.

Also, if you participate in a workplace retirement plan, work beyond age 73 and do not own 5% or more of the company, you can delay RMDs from that plan until the year you retire. If you have other non-work-related accounts, such as a traditional IRA or a 401(k) from a previous employer, you are still required to take RMDs from those accounts after age 73, even if still working.

Deadlines and Penalties

Generally, you must take your distribution every year by December 31 in order to avoid penalties. You can choose to delay taking your first distribution until April 1 of the year following the year you turn 73. Be cautious when delaying the first distribution, as it may push you into a higher tax bracket since the next distribution is to be made by December 31 of the same year. You can always withdraw more than the required amount, but you should not take less. If you do not take out the minimum, you will be assessed with a 25% penalty on the amount that you failed to withdraw along with any income tax owed on it. This penalty drops to 10% if you take the necessary RMD by the end of the second year following the year it was due. Account owners should consult with their tax professionals for the

required tax forms to be filed for the years in which the RMDs were required but not taken.

Distribution Amounts

Your RMD is calculated by dividing your tax-deferred retirement account balance as of December 31 of the previous year by an Internal Revenue Service (IRS) estimate of your life expectancy. A special rule applies if your spouse is the beneficiary and is more than 10 years younger than you.

IRA withdrawals must be calculated for each IRA you own, but you can withdraw the money from any IRA or combination of IRAs. 403(b) account totals may also be combined with IRAs for RMDs taken from any account or combination of accounts.

With 401(k) and 457(b) plans, however, you must calculate the RMD for each plan and withdraw the appropriate amount from each account. To calculate your RMD, you can use the worksheets on the IRS website, IRS.gov/ Retirement-Plans and click on “Required Minimum Distributions.” Alternatively, contact your IRA custodian or retirement-plan administrator who can do the calculations for you.

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Foundation Celebrates 48th Anniversary

The Foundation celebrated its 48th anniversary in April at its Annual Meeting at the LSU Lod Cook Alumni Center in Baton Rouge, where more than 50 pastors, donors, board members and other friends attended. Special guest was Bishop Delores “Dee” Williamston of the Louisiana Annual Conference, who gave an inspirational, educational and entertaining keynote address relating to the theme of the meeting, “Common Threads.” She included a multitude of patches that she had crocheted that will be sewn together to make a quilt, demonstrating how we are all woven together to become one.

New Board Members

The Foundation Board of Trustees elected three new members at the meeting. They began their terms on June 1, 2023.

Rev. Clifton Conrad is a native of Baton Rouge and currently senior pastor of the Asbury-St. Matthew UMC in Algiers.

Joe Crouch, Jr., is a retired CPA and a member of First UMC of Alexandria.

Robert Kimbro is a member of Gretna UMC and has worked in public accounting for nearly 40 years and is the CEO of a financial management firm.

Additionally, Irwin Felps, a member of Blackwater UMC in Central, was recognized for his many years of service to the Board, including Board Chair from 2012 to 2014.

Bishop Williamston gives the keynote address at the Foundation Annual Meeting, demonstrating the theme, “Common Threads.”

Irwin Felps (center) receives thanks and appreciation for his service to the Board from President Chris Spencer (left) and Board Chair Omer Davis (right).

Rev. Clifton Conrad Joe Crouch, Jr. Robert Kimbro