January 2019

January 2019 Q & A

Q and A

I just signed up for Medicare Part D, the prescription drug benefit, and I’m confused about the “donut hole,” the coverage gap. Can you explain?

The donut hole, or coverage gap, occurs once you reach Medicare Part D’s initial coverage limit of $3,820 in 2019 and ends when you reach $5,100 in out-of-pocket costs. Patient costs in this gap used to be more than half the cost of prescriptions, but those costs are reduced in 2019. You still have deductibles and co-pays, and Part D plan costs differ widely, so talk to your health insurance professional and go to www.medicare.gov for more information.

I’d like to start a non-profit organization, to which contributions would be tax-deductible, to feed families in financial stress. How do I go about starting a 501(c)(3) organization?

First, you should meet with an experienced attorney and your tax professional to create a plan describing the goals of your organization. Creating a 501(c)(3) non-profit involves filing for a business name and incorporating with the appropriate agency in your state. Once these are established, you’ll need to pay a fee and file a 501(c)(3) application with the IRS to gain tax-exempt status. Other items to attend to include naming officers and a board of directors, drafting
bylaws, and establishing written rules and procedures for running your non-profit.


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