Emerge. Recover. Re-energize.After a particularly challenging

busy season complicated by new tax legislation and a government shutdown, I wish each of you a pleasant spring to catch your breath, take a few days off and re-engage with friends, family

— and the MECPA!In 2019, we’ll offer new professional

development programs and social events – check our list on page 2, but please check our website periodically as we’ll be adding more.

We’re working, for example, on creating an “ABC Day” —Accountants for Better Communities. It’ll be an all-volunteer event, and I welcome your suggestions and participation.

Your involvement in several up-coming initiatives would be mutually beneficial and very much appreciated. Please let me know if you’d like to help with any of the following:

• Use your voice. On the legisla-tive front, we’ll be working on firm mo-bility and adding Maine to the growing list of states that now allow this.

• Be a watchdog. Along with the AICPA, we’re monitoring the deregu-lation trend and working to ensure it does not adversely impact CPA licensing.

• Mentor a student. Visit a class-room or let a student job shadow you. Human capital is our greatest asset, and we’re working toward expanding the talent pipeline through collaboration with Maine’s high schools, colleges and universities.

Let’s work together to better our profession, you and your firms, our community and the MECPA.

– TrishTrish Brigham, Executive Director

761.0925 / trish@mecpa.org

Breathe, pat yourself on the back, and then

reconnect with us!

Excerpted from an article provided by Boomer Consulting Inc.

As firm leaders read articles, attend conferences and talk to peers, it seems they’re looking or hoping for the solution that will magically transform their firms. Unfortunately, there’s no magic solution.

However, you can take steps to de-termine the right course for your firm. As with any other tough project, you

need to make a plan and do the work.It starts with a vision and a strategic

plan built to support a firm’s 3- to 5-year vision. And these must be put in writ-ing. Transforming your firm requires an integrated approach.

Here are five areas of focus for chart-ing the course of your firm’s transforma-tion, as well as questions to consider

Transform your firm! Here’s how to get started

Continued, page 2

Everybody loves choices, and you’ll have an a la carte selection of sessions at our Annual Meeting on May 15.

We recommend the full menu option, of course! That includes lunch and pre-sentations on the most-pressing practice management issues … and tips on how to turn challenges into opportunities.

The afternoon concludes with an update on AICPA activities and what it means for Maine CPAs and business professionals. And a social hour with appetizers and open bar will follow.

The MECPA Board of Directors

welcomes all current and prospective members to the Annual Meeting and encourages involvement in our Society.

The event begins at 12:30 p.m. at the Clarion Hotel in Portland (Sign-in starts at 12:15 p.m.). For those traveling from a distance, hotel rooms are available for a discounted rate of $89/night. Contact Clarion directly to reserve a room.

A la carte in this case means that you can register for 1.) the Conference only, 2.) the Conference and Annual Meeting or 3.) the Annual Meeting only. Details and registration are at mecpa.org.

Maine Society ofCertified Public Accountants

MECPA

Volume 2, No. 2. April 2019ConneCt. Progress. ACt.

New in ’19: An a la carte Annual Meeting

Logging loads of hours on roads, in serviceBeYonD tHe nUMBers: PAUL LetALIen

What started as an impromptu run with a friend more than 20 years ago led to many running accomplishments for MECPA mem-ber Paul Letalien, a longtime principal with Baker Newman & Noyes.

“Not wearing the right shoes, blisters seemed to be forming with each step that day,’’ recalls Paul. “But, in the end I was hooked, and thinking to myself ‘I know I can do better.’ And so the miles began.”

Many, many – in fact, thousands of – miles!

At 62, he has completed 17 marathons (26.2 miles apiece), more than 50 half-mara-thons, and many other races.

“Doing a marathon is the holy grail of run-ning. To achieve your goal, you need to do a fair amount of training. For us nonprofes-

Paul Letalien in a recent half-marathon. Photo by David Colby Young. Continued, page 4

while creating your plan of action:

1. TechnologyDo you have a written IT strategic plan as

part of your vision? The value of an IT plan is getting your firm to think differently about the future — to be innovative and transfor-mative. An outside facilitator can signifi-cantly accelerate the process and ensure a focus on strategy and innovation.

How are you incorporating emerging technologies into your short- and long-term plans? What emerging technologies should you be implementing now? Which should be on your radar for the near future?

These questions are the beginning of your IT strategic plan. As a first step, it’s important to demystify emerging technolo-gies with education and awareness.

It’s also essential to make sure you’re getting the most out of the technology you’ve already invested in. Consider an IT assessment to evaluate your use of tech-nology and areas of opportunity.

2. Process

Are you regularly evaluating your processes to ensure they’re effective? Processes need to keep up with changing dynamics and applications.

Are you focused on just efficiency or on overall process effectiveness? Optimal processes are consistent, efficient and provide a high level of quality and profit-ability. Make sure you aren’t just speeding up tasks that don’t produce quality work or

provide value to your clients.Are you evaluating all areas? Tax and audit

are obvious areas to work on improving pro-cess effectiveness, but don’t stop there. Look at billing, client and new-hire onboarding, business development and other processes.

3. TalentWhat kind of skills will be needed in your

firm in the next three to five years? Skills that continue to push your firm forward in-clude the ability to share vision, think big, build teams, make tough decisions, focus on the big picture, take risks, delegate effectively, give and receive trust, motivate others, develop business, and hold them-selves and others accountable.

These skills don’t always come naturally, but you can help foster them by getting people involved in committees, client relation-ships and a forward-thinking peer community.

What’s the timeline for training, and what resources will be used? Training needs to be broader in scope than just CPEs.

You’ll need to invest time and money into assessing needs, developing curriculums and classes, identifying resources, con-ducting training and measuring results.

4. LeadershipTransformation requires strong leaders

who can provide courage, commitment, capability and confidence.

What new leadership needs to be developed, and how are you doing this? Too often, current leaders complain that younger generations aren’t interested in becoming a partner. The problem typically isn’t a lack of motivation or ambition. It’s that they can’t picture their future in a firm that isn’t transforming to remain relevant.

But create a vision for your firm, and the next generation will have a strong desire to be a part of its long-term success.

5. GrowthGrowth can be organic or from mergers

and acquisitions. Many firms are doing both. Either way, it requires a commitment to people, planning and processes.

As technology and processes create capacity in your firm, don’t simply fill the space with more of the same. Use it to develop niche areas that can help differen-tiate your firm from the competition.

It’s a good idea to have one person in charge of business development efforts to focus on the big picture, ensure leads are moving forward and pull in the right people at the right time.

There’s no magic solution to transfor-mation, but you don’t have to go it alone. Learn from peers and solution providers. We’re happy to help or point you in the right direction.

Boomer Consulting, Inc. provides con-sulting services to hundreds of CPA firms.

Transform your firm – continued “The problem typically isn’t a lack of motivation

or ambition. It’s that they can’t picture

their future in a firm that isn’t transforming to remain relevant.”

April 255:30-7:30 p.m. — Accounting Career Night with USM School of Business, Glickman Library, Portland

May 1512:15-5 p.m. – CPE: Practice Management Conference & Annual Meeting, Clarion Hotel, Portland (Hotel discounts available)

May 17 8:15 a.m.-4:30 p.m. – CPE: Employee Benefit Plans Update, Bernstein Shur, Portland

June 13 1-4:30 p.m. – CPE: Ethics Update, USM Portland

June 18 6 p.m. – Get a Kick Out of Kickball: MECPA vs. People’s United Bank, Westbrook. Field sponsor: Cyber Secure Pros, LLC.

June 20 10:45 a.m.-2 p.m. – CPE: Succession Planning II: The Texas Hold’em Moment. Co-hosted by Institute for Family Owned Business, Husson University, Westbrook

June 258:15 a.m.-10:30 p.m. – CPE: Lions & Tigers & Sociopaths: Dealing with Difficult People, USM Portland

June 275:30-7:30 p.m. – Business Professionals Meet & MIngle, co-sponsored with Bangor/Waterville IMA & People’s United Bank, Sebago Brewing, Bangor

Aug. 208:30 a.m.-4:30 p.m. – CPE: FASB/SSARS/SAS 2019 Update, Fireside Inn, Portland

Aug. 22 5-7 p.m. – MECPA vs. Maine State Bar Association 2nd Annual Softball Showdown, Freeport. Start swinging those bats!

Aug. 278 a.m.-noon – CPE: Interactive Ethics, The Daniel Hotel, Brunswick

Sept. 18 & 25 & Oct. 2 5-7 p.m. – Cornhole Tournament, The Quarry Tap Room, Augusta & Definitive Brewing Company, Portland

Watch your email and mecpa.org for more events. Details will be posted, as always, at mecpa.org.

Mark your calendars, clip this handy list, plan to partake!2

A primer on PRIMA (Peer Review Integrated Management Application)

By the time most students walk onto a college campus for the first time, they have a pretty good idea, or at least pro-fess to, about their course of study.

In an effort to educate high school students about the benefits of the ac-counting profession, the MECPA has stepped up efforts to connect with high school educators and students.

MECPA member Matt Barbour, a principal at McLeod | Ascanio, helped deliver an economics lesson in February at Cheverus High School in Portland.

“My students and I very much ap-preciated Matt’s bringing a real-world, practical perspective to textbook concepts and showing how these concepts and accounting relate to ordinary business and professional life,” said Davis Hartwell, who chairs the Cheverus history department.

Interested in visiting a classroom? Great! Contact MECPA Executive Director Trish Brigham.

Expanding the pipeline of great accounting professionals

At a January meeting of state CPA Societies, AICPA President and CEO Barry Melancon shared an update on the top is-sues facing the accounting profession.

A key theme was the need for adapta-tion and evolution in the face of disruption driven primarily by demographics and technology. While cautionary, his com-ments suggested opportunities exist for firms willing to embrace change.

On the plus side, trust in auditors re-mains strong. According to the Center for Audit Quality 2018 Main Street Investor

Survey, 81 percent of survey participants expressed confidence in public company auditors. This is a competitive advantage, and successful firms will work to retain trust and enhance audit relevance.

Melancon encouraged firms to think more broadly and invest differently in hu-man capital. He also preached constant training and skills development. Of par-ticular note, he said traditional “soft skills” have becoming increasingly important.

The top 10 most-in-demand skills include emotional Intelligence, creativity,

leadership and social influencing.Cloud computing, Big Data & analytics,

AI and blockchain are the key technology drivers, he said. Acquiring or developing expertise in these areas will facilitate a shift toward value-driven and value-added accounting and financial services.

On the legislative front, firm mobility and challenges to professional licensing are of top concern.

Join us at the MECPA’s Annual Meeting May 15 to hear more on these topics and how they’ll impact Maine CPAs.

Industry trends and update from the AICPA’s president

3

MECPA member Matt Barbour, guest teaching in February at Cheverus High School in Portland.

PRIMA TIPS• Add prima@aicpa.org to your list of safe senders.• Close other tabs before working in PRIMA.• Access items under ‘Action Items’ heading near the top

of our home page.• When adding reviewer information, complete only one

field before clicking ‘Search.’• Do not check the box ‘No A&A engagements performed

under independence standards if your firm does perform compilations, reviews and/or audits subject to the AICPA Independence Standards.

• Create an engagement list before filing Peer Review Information. Be sure the listing is only for the firm’s peer review year and includes all engagements.

• Confirm the accuracy of your PRI to prevent delays in the review process.

AICPA’s mentoring programLooking for “someone to lean on”? Or someone to

teach to “lean in”? Check out this article about the AICPA’s online mentoring program.

If you’re interested, don’t let geographic distance stand in the way. One of the participant pairs con-ducted their relationship entirely via phone!

Follow these steps to enroll in the program:Visit aicpa.org/mentoring; log in with your AICPA

user ID and password. Not an AICPA member? Use the code MENTORING 18 for a 50 percent discount.

Type in your location. Create a profile. Upload pro-file information from Linkedin or another social media account. Provide information/answer questions to guide the matching process.

“It is so important to find strong mentors and role models,” says Yasmine El-Ramly of the AICPA. “Someone has to teach us the ropes. We shouldn’t have to recreate the wheel every time. We should be able to learn what others have done, and adapt and build on that.”

By Pamela M. Lemire, NEPR Executive Director

New England Peer Review ad-ministers the AICPA Peer Review program for Maine CPAs.

Two years ago, the AICPA transitioned to Peer Review Inte-grated Management Application), a web-based system for adminis-tering and tracking peer reviews. PRIMA was launched to address evolving complexities of practice management and to streamline the review process.

Firms, reviewers and admin-istering entities must adhere to prescribed reporting schedules and receive timely reminders at each stage of the process.

PRIMA updated functionality for the Public File, Reviewer Search and Facilitated State Board Access (FSBA) and provides expanded self-service options, including for tasks unrelated to in-process reviews – for example, requesting year-end changes or due date extension.

The AICPA continues to evalu-ate the system with an eye toward improved usability.

NEPR staff members are available to help. Contact 603.623.3513/ pamela@nepr.org.

If the National Peer Review Committee is your administering entity, call 919.402.4502 or email PRSupport@aicpa.org.

4

By Bob Benoit

Each year my staff, part-ner and I celebrate after April 15. We’ve gotten through tax season, the accounts receiv-ables are nice and high. Ahhh, we can catch our breath, relax a little and return to the usual 50-hour workweek.

But one year, we decided to use our post-tax season to invest in our accounting firm and its people. Like a boat getting repairs in dry dock, we upgraded our project tracking, budgets, technology – and our leadership/people skills.

We worked to communicate management expectations and values, and this quote from Roy Disney was apt: “When your values are clear to you, making decisions becomes easier.”

Our first three of a dozen values identified were obvious. We knew we wanted a sustain-able organization that promoted high standards of integrity, innovation and excellence.

One way to identify your organization’s positive values is to know your negative val-ues. Are there certain people who do things that irritate you more than others?

One reason for the discom-fort could be that their values are different from yours. Al-though we might think every-one understands our values, some just don’t.

Take a moment to write down the things that person does or doesn’t do that you dislike. Think of another person, and do the same. This exercise will help you identify positive values.

For instance, if it aggra-vates you that someone doesn’t finish what they start or overcommits, you may value follow-through, com-munication and/or integrity. If someone does half-hearted or sloppy work, your values may be accuracy, excellence, com-mitment and/or responsibility.

When you’re done writing down the values you’ve identi-

fied, consolidate them, group them and present them to your employees, maybe via a slideshow, maybe over lunch.

Let them ask questions. Create buy in. Establish ac-countability systems and link to personnel reviews, docu-ment compliance.

After you see the benefit of identifying your organizational values, sell the idea to your cli-ents! And watch them prosper.

MECPA member Bob Benoit has been a peer reviewer and owner of a CPA firm, an ethics training company and a SOX compliance firm. He is the author of Integrity, Not Optional.

*Note: We’re hoping to arrange a leadership confer-ence with Bob in the fall.

As you all know, integrity is never optional for CPAs

sional runners, we are not likely to do more than one a year, if that, so you want to give it your best effort,” explains Paul, whose last marathon was Boston in 2015.

“The last six miles of a 26-mile event tests your physical and mental capacity – it’s where your goal is achieved or lost.”

Why does running hold such appeal?“It’s probably a combination of (1) keep-

ing somewhat fit, (2) challenging yourself, (3) being outside, (4) disconnecting or mental relaxation, and (5) the social net-work part (running with friends).”

For other fun, Paul enjoys “doing pretty much anything outside.” He likes to golf and earned his pilot’s license, which he calls “a neat and exhilarating experience.”

With Baker Newman & Noyes for 36 years, Paul led the firm’s healthcare con-sulting practice for 25 years and credits his accounting background.

“It’s a great profession that allows for

the opportunity to grow professionally, and I enjoy the variety of work we can do to assist our clients with their challenges.”

Paul and his wife Janet, who live in Portland, share a passion for running and for community volunteerism.

They’ve actively supported the Center for Grieving Children, which provides sup-port to people during times of grief and loss. He recently completed a seven-year board term, including serving as presi-dent, and Janet is active with the organi-zation’s annual gala and auction.

They’re both longtime supporters of the United Way of Greater Portland, too. Paul also just finished a term as treasurer on the board of Rippleffect, a nonprofit that promotes youth develop-ment and leadership through adventure programs.

Paul says the importance of giving back to the community was initially fostered in him through Baker Newman & Noyes.

“Our firm supports and encourages our employees to become involved, and many do,” he says. “I feel it’s rewarding and something that I can look back on and say that ‘we made it better.’ ”

Beyond The Numbers – continued

It’s membership renewal time: 3 excellent reasons to rejoin/join

1. As members, you have the distinct

advantage of being “in the know” via our communications and numerous

events and activities.

2. You save on CPEs (including Surgent

courses), travel, professional publications, CPA exam review courses, cyber and

professional liability insurance; and more.

3. We offer lots of opportunities

to expand your knowledge, your professional and social networks and your horizons – while also having fun.

We love connecting with you. Let’s keep the conversation going! Membership dues notices will be mailed later this month. Please invite colleagues and friends to join, too! FMI, email Trish Brigham.

We asked MECPA members to share their thoughts on how they strike a bal-ance between the demands of the job and the rest of their lives. Here are a few responses, and we welcome more!

Alison Jacobs, Berman & Simmons, attorneys“I think it is very healthy to make sure we take time away from the office. Usually if I am travelling in the U.S., I still monitor and answer emails that require immedi-ate answers. But if I travel outside the U.S., I totally unplug from work. The other way I stay sane is that I do take some time at lunchtime and go outside to read some fiction (usually romantic tripe so I can be mindless and not think about work) as this gives my brain a chance to relax and recharge. Plus, some alone and quiet time is always good for the soul.”

Ralph Hendrix, wipfli | macpage: “Only ask people to work half-days ...12 hours! (Funny after April 15.)”

Laura Everett ARB:“First way to address this is to realize that work/life balance is not possible. Nothing is a balance. Work-life integration is the key.”

Jordan Kennedy, Dufour Tax:“Lots of taxes and the following when I can:1) skiing2) biking3) training for a half-marathon (talked into it by a friend even though I detest running) 4) cross-country skiing 5) snowmobiling”

Work-Life balance: If there is such a thing, how can it be achieved?5

UMaine needs your help in determining ways to best prepare future CPAsThe University of Maine Graduate

School of Business is examining how to best prepare Maine’s future CPAs, and it is requesting your help.

UMaine is searching for partners to serve in an advisory capacity on the ideal curriculum, skills and credentials for our state’s aspiring CPAs. It is exploring sub-jects like what soft skills your firm looks

for in new CPAs, and the future of the industry in our state.

UMaine has been offering MBA and accounting graduate education for more than 50 years. After requests from em-ployers for flexible online options, UMaine will launch its fully online MBA with a concentration in accounting this fall. Your input will help guide future curriculum,

concentrations and content. For firms and individuals interested in

contributing to this important discussion, the University will begin focus groups and individual conversations in early May. If you’d like to lend your skills and expertise to the UMaine Graduate School of Busi-ness, please fill out this brief contact form.

After a long winter hiding solo in your

office, here are two great ways to reconnect to colleagues and

friends, get outside, have some fun and build community!

1. Teens To TrailsTeens to Trails — an organization

dedicated to increasing opportunities for teens to experience the outdoors through creation of and support for high school Outing Clubs — is build-ing its board finance “know-how” and welcomes the involvement of accounting professionals. The time commitment is about 4-6 hours a month.

Contact Lia Morris for more infor-mation.

2. Husky Business ChallengeBusinesses of all sizes are invited

to this first-ever event hosted May 4 by University of Southern Maine School of Business students! It’s a half-day of fun and friendly competi-tion at the Field House of USM’s Gorham Campus.

Beneficiaries include Preble Street, Gorham Food Pantry, USM Sports Management Program and USM Athletics. FMI, go here.

Ready to end your hibernation? These are two great ways to reconnect

Welcome new CPAs!We so appreciate Maine

Foodie Tours and Bayside Bowl in Portland for gener-ously donating prizes for our very fun early winter Trivia Trounce!

Answer is: Thank You! It’s all happening

at mecpa.org!

Are there new CPAs in your office? Be sure to welcome and congratulate them and encourage them to attend our May 15 Annual Meeting to get their official MECPA certificates!

Get to know your state Board of AccountancyMembers of Maine’s all-volunteer Board of Accountancy ap-

ply and are appointed for three-year terms by Maine’s governor. Four of its five members must be licensed CPAs; the fifth is

a member of the public. Thanks and hats off to the following sitting board members for their service to the profession and Maine residents! (The position of public member was vacant at the time of publication.)

Chairman Tracy HardingTracy is BerryDunn’s director of quality assurance. He’s a regular presenter for a variety of industry organizations and audiences. In addition to his membership with the MECPA, Tracy is an active mem-ber of his community and is involved in several other professional organizations, including the Auditing Standards Board and the Regulatory Response Commit-tee of the National Association of State Boards of Accountancy.

How long have you served on the BOA?Originally appointed by Gov. John Baldacci in 2005.

Most memorable moment or the most rewarding aspect of your board service?My most memorable moment had to be the meeting at which one of the board staff announced her retirement. For her last meeting, she brought with her the pictures each board member had sent in when first applying for a CPA license, back when we each passed the CPA exam. I had huge hair, and looked like I was wearing my father’s suit!

Advice for anyone interested in serving on the BOA? I highly recommend service. My advice would be to maintain fo-cus on how the work of CPAs serves the public interest, which helps remind us of the importance of doing so pursuant to the rules of professional conduct contained in the board’s rules. We regularly refer to these rules when evaluating complaints, and familiarity with them would serve a potential board member well, with respect to both board service and their service to the public as a CPA!

Complaint Officer MIke NickersonMike owns Nickerson Professional As-sociation. He has been in accounting since 1983, when he joined the practice founded by his father in 1954. Mike is a past president of the MECPA and is ac-tively involved in several professional and community organizations, including his current service as state representative to the New England Graduate Accounting Study Conference.

How long have you served on the BOA?Since 2009, so 10 years.

Most memorable moment or the most rewarding aspect of your board service?Sharing in the process of rewriting state regulations around licensing of CPAs in Maine.

Advice for anyone interested in serving on the BOA? Be prepared for time and effort on behalf of the board, but it is NOT too much time or too much effort. Very rewarding.

Board member Carl Chatto Carl is an audit principal at Baker New-man Noyes. He is a past president of the MECPA and an active member in several local organizations. His work has been featured in numerous publications, and he is a regular presenter, speaking on a variety of topics, including mergers and acquisitions, and employee benefits.

How long have you served on the BOA?Since September 2013.

Most memorable moment or the most rewarding aspect of your board service?The board’s mission is to protect the public, and in that regard I think the biggest lesson I’ve had reinforced is the need to com-municate with our clients. Most of the complaints we receive against CPAs arise from the CPA not communicating difficulties to their clients, usually deadlines. The most rewarding aspect to me is seeing new CPAs become licensed to continue the tradi-tion of CPA service to Maine people and businesses.

Advice for anyone interested in serving on the BOA? Serving on the board is a great way to help make sure the rules and regulations affecting CPAs are kept up to date. I encourage CPAs interested in helping to preserve the special role CPAs have to contact one of the current members.

Board member Brian Perkins Brian graduated from Bentley University in 1967 and has been in accounting ever since, mostly at his firm Boucher Perkins Campbell Paradis. In addition to his memberships in the MECPA and the AICPA, Brian is a past board member of Bath Savings and a past president of the National Association of Accountants).

How long have you served on the BOA?Seven years.

Most memorable moment or the most rewarding aspect of your board service?It’s been a lot more work than I expected, but it’s very worthwhile.

Advice for anyone interested in serving on the BOA? It’s a very rewarding experience, and it’s always good to give back to your profession.

6

We’re growing! Follow the MECPA on Twitter and Instagram. Connect on Facebook and LinkedIn. In other words, let’s CONNECT!

By the AICPA Communications Team

You’re hoping to leave a nice legacy to your loved ones, something that can en-hance their financial security or help them achieve goals.

Have you considered how your Indi-vidual Retirement Account (IRA) fits into your estate plans?

Here are some things to consider:

Pick the right beneficiaryPeople fund IRAs so that they’ll have

money for their retirement, but some may be secure enough financially that they won’t need everything in their accounts.

With that possibility in mind, IRA owners are asked to name beneficiaries who will inherit their accounts when they die, and it’s important to do so. If you don’t have a beneficiary, it will complicate the timing and tax concerns for those who inherit your estate.

Be aware, also, that if you designate a beneficiary in your account documents but name someone else to receive the IRA proceeds in your will, your money will go to the named beneficiary on your account.

That’s why it’s very important to ensure that your beneficiary designation is up to date and in sync with your will or other estate documents.

Remember to consider updating your beneficiary when you marry, divorce or have another change in family situation.

Understand rules for spousesMarried couples typically choose their

spouses as IRA beneficiaries, and surviv-ing spouses have some complicated choices to consider when they inherit.

A surviving spouse, for example, may decide to roll the IRA over into a new or existing IRA in their own name, which may or may not be a good idea depend-ing on the spouse’s age and whether the money in the IRA will be needed.

Converting an inherited traditional IRA into a Roth IRA is another possibility, but you’ll have to pay taxes on the conver-sion. Spouses also can transfer the ac-count assets into an Inherited IRA. Your CPA can explain the options and help you decide which one is best for you.

For a child or grandchild ...If you name a child or grandchild as an

IRA beneficiary, they’ll have to begin tak-ing annual required minimum distributions immediately, and those RMDs will be tax-able. However, the amount of the RMDs

will be based on their expected lifetimes, so the annual taxable distributions will be relatively small and the money in the account will have many years to grow tax free.

This is preferable to naming your estate as the IRA beneficiary because it helps avoid probate and stricter distribution time limits.

Another option: If your children or grandchildren have been named as contingent beneficiaries on your IRA, your surviving spouse can disclaim the IRA, which also allows younger generations to inherit instead and enjoy the account’s tax-free growth over their lifetimes.

Consider a charitable giftIf you’d like to use your inheritance to

make a difference, there are two reasons to leave your IRA to a charity.

First, the organization will get your legacy tax free, allowing it to do a great deal of good with your gift. Second, your estate will be able to deduct the donation, which lowers the amount of any estate taxes your heirs may owe.

Remember, too, that if you are over 70.5 and taking required minimum dis-tributions from an IRA, you can donate those funds to a qualified charity through a qualified charitable distribution.

If you’re certain you will not need your entire IRA during your retirement, this is one way to lower the taxes you owe on your RMD and watch your money being put to good use during your lifetime.

There’s a lot to consider when leaving an IRA as an inheritance

Your Board recommendations ...Think

Spring!

By Lauren Corey MECPA board member

In early February, a work-ing group of your peers met to discuss a self-insured group option for Maine CPA firms that are in the small employer insurance market.

To determine whether this is a viable option, the MECPA is gathering initial data for its as-sessment. Your firm’s data will help the committee develop

general scenarios with which it can approach the stop-loss insurance market.

Assuming that market shows interest, the commit-tee then would dive deeper for information to determine premium structures. The next step would be completing a Multiple Employer Welfare Ar-rangement application to the Maine Bureau of Insurance and forming a trust to receive premiums and pay claims.

A group health plan would be regulated by the Maine Bureau of Insurance and the U.S. Department of Labor.

A late March U.S. District Court decision struck down the president’s executive order that would have allowed (with state regulatory rulemaking and approvals) small em-ployers to band together to form health insurance trusts. However, the MECPA is an association that already exists

based on common industry, and we’ll proceed with the assessment based on the assumption that covered lives would only include members of the MECPA.

Someone at your firm likely will be contacted to provide the first round of data. We will be reaching out by letter and Survey Monkey. A timely response to our request will be greatly appreciated!

Thank you.

Group explores viability of MECPA health insurance plan7

You’ll vote for new MECPA leaders at the May 15 Annual Meeting. The current Board of Directors recommends this slate of officers.

If you have questions or concerns, contact Board President Karla Brannen or Nominating Committee Chairwoman Lauren Corey.