KATHRYN B. BROWN
Owner
ANDREW CUTLER
Publisher/Editor
ERICK PETERSON
Hermiston Editor/Senior Reporter
TUESDAY, MAY 3, 2022
A4
Founded October 16, 1875
OUR VIEW
Helping
out those
in need
C
harities and food banks
across the region face an
unprecedented set of new
challenges and the larger needs
to fi nd a way to help them out.
Demand is up for services at places
such as Hermiston’s Agape House
food bank and the Pendleton Salva-
tion Army. At the same time, costs
for food products is rising. When the
COVID-19 pandemic raged across the
area monetary donations increased,
but now that the specter of the infec-
tion seems to be receding the need
for foodstuff s and money remains.
Rent also is going up while dona-
tions from large corporations
declined. Federal and state aid, in
some cases, continues to lag.
Lisa Patton, of Heppner’s Neigh-
borhood Center of South Morrow
County, said her organization is
crafting and handing out more food
boxes than ever before. Last month,
for example, Patton’s group put
together a record 166 food boxes.
The good news in this depress-
ing scenario is it appears the local
charities and food banks are hard at
work creating sustaining partner-
ships across the community. That
means a group of people in our
community are working together to
solve a problem and that is always a
great sign a solution can be food.
Yet, more needs to be done. As resi-
dents, as voters, of our great region we
all are busy, and we all have substan-
tial reasonability. However, one
responsibility of a citizen of a Repub-
lic is to help out and lend a hand to
those who are less fortunate. Simply
dismissing the issue as one that does
not concern you isn’t good enough.
That’s why is it vitally import-
ant that residents, if they can, fi nd
a way to donate to area food banks
and other charity organizations. You
might not think a small donation will
make a diff erence, but it does. You
might not believe the donation of a
few cans of food or a bag of pasta will
not make a diff erence, but it will.
The other resources area residents can
give to area food banks is time. Chari-
ties, food banks and other civic group
always need more manpower. Helping
out one of these organizations is a great
way to give back to the community.
The problems faced by our area
food banks and other charity organi-
zations may seem daunting, but if we,
as a community, decide to help out,
those challenges can be overcome.
EDITORIALS
Unsigned editorials are the opinion of the East
Oregonian editorial board. Other columns,
letters and cartoons on this page express the
opinions of the authors and not necessarily that
of the East Oregonian.
LETTERS
The East Oregonian welcomes original letters
of 400 words or less on public issues and public
policies for publication in the newspaper and on
our website. The newspaper reserves the right
to withhold letters that address concerns about
individual services and products or letters that
infringe on the rights of private citizens. Letters
must be signed by the author and include the
city of residence and a daytime phone number.
The phone number will not be published.
Unsigned letters will not be published.
SEND LETTERS TO:
editor@eastoregonian.com,
or via mail to Andrew Cutler,
211 S.E. Byers Ave., Pendleton, OR 97801
Does your retirement account need rescuing?
STEVE
KERBY
LAYIN’ IT ON THE LINE
ecause of the accumulation bene-
fi ts of tax deferral, many individ-
uals have successfully created
substantial IRA or 401(K) accounts or
other qualifi ed plans.
Many people are shocked at how much
of their tax-deferred balances will be
erased by current taxes when funds are
withdrawn. It is not uncommon for these
accounts to have amassed seven fi gures
of total dollars. It is also usually the case
that little attention has been focused on
what will happen to one’s hard-earned
dollars when taking money out of the
plan.
B
Reductions due to taxes
can be dramatic
The tax-caused decrease in total
assets going to family members can
be dramatic. For example, we recently
reviewed a client situation where the plan
holder had a $6 million balance. The
client wished to begin distributions at age
70½. Further, the client did not require
any distributions to maintain their life-
style and wanted all the funds to go to
children. The client was disappointed to
learn that, under the client’s current struc-
ture when distributed over 10 years, the
$6 million would be slashed because of
taxes by $2.6 million and only yield $3.4
million net proceeds to the benefi ciaries.
The $2.6 million of asset erosion
occurs because all funds coming out of
a qualifi ed plan are fully taxable as ordi-
nary income. And, contrary to common
belief, assets in an IRA do not benefi t
from a step-up basis when passed on.
Thus, while this case was a reduction of
some 43%, other plans can be crushed by
as much as 75% because of income and
estate taxes.
The existing plan had other vulnera-
bilities, as well. One was the assets were
all held in equities subject to signifi cant
drops in value. Over a lengthy period,
the probability that such a reduction will
occur is substantial.
How to increase net to
benefi ciaries without risk
Fortunately, a solution that could
produce guaranteed results was possible
in this particular situation. We set up a
plan where taxable distributions from the
IRA will be used to purchase the appro-
priate type of life insurance with the
family named as benefi ciaries. The client
and the client’s family can be much better
off with this solution because:
• Assets are shifted from taxable to
nontaxed.
• Total net after-tax assets to the family
are signifi cantly increased.
• The increase in assets is immediate.
• There is no need to enter speculative
investments to achieve the gain.
• The value of the account is not subject
to market losses.
• The results are guaranteed by some of
the most substantial fi nancial compa-
nies in the world.
• The entire plan can be implemented
on a set-it and forget-it basis.
Implementing IRA rescue for
your qualifi ed plan
Each rescue of an IRA or 401K or
other qualifi ed plan is custom-made
for your circumstances. For individu-
als with separate plans and assets, net
benefi ts can increase from some 25%
of asset value to many times the asset
value. For married couples inherit-
ing each other’s IRAs, the after-tax
yield can be much higher than other-
wise. IRA Rescue can be achieved by
converting a client’s weakest assets
— those with the most signifi cant tax
liabilities — to nontaxed assets.
And while a plan’s asset value is
signifi cantly increased immediately,
the tax liability on distributions from
the plan is spread over time, much to
the client’s advantage.
All plans can and should be coordi-
nated with your accounting and legal,
trust, and estate advisors, and we do
that as a matter of course.
A complete solution is available
with plan distributions able to be
executed on schedule, trustees guar-
anteeing that policy premiums are
paid as required, trustees delivering
gifts to benefi ciaries, and taxes able to
be paid at the funding source. These
solutions can truly be established to
set and forget while delivering much
more fi nancial benefi t to those for
whom a client wished to provide
fi nancial security.
———
Steve Kerby lives in Wallowa County
and has more than 50 years in the fi nan-
cial services industry, specializing on
each individual client’s goals.
YOUR VIEWS
Reelect Lindsay for
Morrow County
commissioner
Please join us in voting to reelect
Melissa Lindsay for Morrow County
commissioner.
Melissa has worked tirelessly for the
last fi ve-and-a-half years as a Morrow
County commissioner; she has been
present and committed to the job, spend-
ing countless hours representing and
working on behalf of the county.
Growing up on the family farm and
spending the majority of her adult life
here, she understands Morrow County’s
uniqueness, its strengths, weaknesses
and its complexities. She is honest, trust-
worthy, not afraid to put in the work and
is always striving to do what’s in the best
interest for Morrow County and its citi-
zens. She listens, is intelligent, wants to
learn about issues and more importantly
she is willing to ask tough questions in
order to fi nd a solution that works.
Melissa lives and breathes her
commitment, which we think makes her
an excellent choice for the job of Morrow
county commissioner.
Steve and Lisanne Currin
Heppner
Thank you for sharing
our daughter’s story
I would like to express my gratitude
to Erick Peterson for his skill in convey-
ing what it is like to be a young woman
on the autism spectrum and live with
seizure disorder. He accurately captured
the essence of our daughter, Jilli. The
article was a celebration for all indi-
viduals with intellectual/developmen-
tal disabilities. It highlighted how our
community reaches out and embraces
this special population.
I also appreciate how this article
shares how important the role of East-
ern Oregon Service Support Broker-
age is in providing practical supports so
that people who experience I/DD can
contribute to society and live full and
enriched lives.
We are so fortunate to live in a
community that values all people and
have a newspaper that is willing to tell
these valuable stories.
Mark and Kristi Smalley
Hermiston
CONTACT YOUR REPRESENTATIVES
U.S. PRESIDENT
Joe Biden
The White House
1600 Pennsylvania Ave. NW
Washington, DC 20500
Comments: 202-456-1111
GOVERNOR
Kate Brown
160 State Capitol
900 Court St.
Salem, OR 97301-4047
503-378-4582
U.S. SENATORS
Ron Wyden
221 Dirksen Senate Offi ce Bldg.
Washington, DC 20510
202-224-5244
La Grande offi ce: 541-962-7691
Jeff Merkley
313 Hart Senate Offi ce Building
Washington, DC 20510
202-224-3753
Pendleton offi ce: 541-278-1129
REPRESENTATIVES
Bobby Levy, District 58
900 Court St. NE, H-376
Salem, OR 97301
503-986-1458
Rep.BobbyLevy@state.or.us
Greg Smith, District 57
900 Court St. NE, H-482
Salem, OR 97301
503-986-1457
Rep.GregSmith@state.or.us
U.S. REPRESENTATIVE
Cliff Bentz
2185 Rayburn House Offi ce Building
Washington, DC 20515
202-225-6730
Medford offi ce: 541-776-4646
SENATOR
Bill Hansell, District 29
900 Court St. NE, S-415
Salem, OR 97301
503-986-1729
Sen.BillHansell@state.or.us