FIRST QUARTER 2016
New Look
A
s you can see GPTC has
rebranded with a fresh new
look. Our previous logo and
branding had been in place for
many years and we felt it was time
for a change.
Nearly 22 years ago when GPTC
was formed, and our logo was first
created, the financial landscape
and competitors were very
different than they are now as
communication via e-mail and
web sites were in their infancy –
now, both have become critical
components of everyday life. The
firm is becoming more actively
engaged in regular public relations,
social media, search engine results
and building brand awareness
through targeted advertising.
While we are looking forward
to our updated appearance, our
goal continues to be to meet
and hopefully exceed client
expectations as the world of
communications evolves.
The entire team at Great Plains
thanks you for placing your trust
with us and wishes each of you a
very happy and prosperous New
Year.
Changes in Social Security
I
n October, without much warning, a number of Social Security rules
changed as part of the passing of the Bipartisan Budget Act of 2015.
The changes do not affect people already receiving their Social Security checks, but clients who are planning their retirement should re-evaluate their plans for taking Social Security.
Those most affected by the
recent changes will be married
couples when both spouses
have their own earnings record,
but the changes will also
impact benefits for divorced
clients as well as strategies for
single filers.
“If you have not yet filed,
and will be age 66 by April
30th of this year, consider
filing and suspending
before the April 30th
deadline to preserve this
strategy.”
The most limiting of the
changes is the elimination of
the “file and suspend” capability, most frequently used by married
couples to access spousal benefits. If you have not yet filed, and will be
age 66 by April 30th of this year, consider filing and suspending before
the April 30th deadline to preserve this strategy.
The ability to file a “restricted application” was also eliminated.
Restricted filers can restrict their benefits to receive only part of what
they were entitled to so other benefits can accrue until a later date. The
ability to file a restricted application has been grandfathered for people
born on or before January 1, 1954.
Social Security is a very valuable benefit; few people realize the
significance of this guaranteed, cost-of-living adjusted income stream.
Educate yourself on the options available to you and how they can be
coordinated to maximize your benefits. For assistance, contact Sharon
at 913-948-9694 or visit www.SocialSecurityIncomeAdvice.com for
more information.
Sharon Weaver, CFP, owner of Mission Financial Planning, Inc. is a
guest contributor; she is not affiliated with Great Plains Trust. 
2016 IRA Eligibility
Please remember to consult a tax specialist to determine your particular eligibility and individual situation.
FEATURE
TRADITIONAL
ROTH
Owner’s Age
Under age 70 1/2
No age limitations
Owner’s Income
Taxable compensation equal to or
greater than contribution
Earned income equal to or greater
than contribution
Owner’s
Maximum Income
No Maximum to make contributions,
but tax deduction with phaseout
MAGI is $117,000 or less ($184,000 if
married) with income level phase-out
Tax Benefits
Contributions may be tax-deductible,
depending on owner’s income and taxfiling status
Never deductible for federal income
Contribution Amounts
$5,500 ($6,500 if age 50 or older)
$5,500 ($6,500 if age 50 or older)
Distributions
Generally fully taxable (unless after-tax
contributions)
Generally tax-free, except the earnings
portion of a non-qualified distribution
Penalties
Taxable portion subject to IRA 10%
penalty unless the individual is age 59
1/2 or older; some expections apply
Same as traditional; some exceptions
apply and contributions can always
be withdrawn without owing taxes or
penalties
RMD
Mandatory at age 70 1/2
None
•
The SEP IRA contribution limit will remain at $53,000 for 2016.
•
As you consider your IRA contributions, remember that 2015 contributions can be made until the owner’s individual federal
income tax-filing deadline, not including extensions (e.g., April 15).
•
Deferrals to 401(k) plans remained the same for 2016. The maximum deferral amount for 2016 is $18,000 ($24,000 if age 50 or
older).
Congress Acts! - Qualified Charitable Distributions
T
he much anticipated annual debate over
certain tax “extenders” was once again
deliberated by Congress and a significant
change was made in 2015. Congress voted to
permanently extend several key tax provisions
including the Qualified Charitable Distribution
(QCD).
QCDs provide that taxpayers actually 70.5
years of age or older at the time of distribution
may make a charitable distribution directly from
his or her IRA and exclude it from gross income
for tax purposes. Married individuals filing a joint
22
GreatPlains
PlainsTrust
Trust
and
Asset
Management
Great
and
Asset
Management
return could exclude up to $100,000 from each
spouse’s own IRA and the donation satisfies any
IRA required minimum distributions for the year.
While the provision is retroactive to Jan. 1,
2015, there is no extension or grace period for
2015 so that time has elapsed, but now there is
certainty (at least as much as any tax legislation)
in planning ahead. GPTC can assist you in
making sure that payment is made directly to the
charitable organization, and you should consult
with your tax preparer to confirm eligibility and if
this would be beneficial to you.
Reviewing Your
Estate Plan
B
ringing in the New Year can be a
reminder to take a fresh look at your
estate plan. As tax laws have changed
over the past few years there has
actually been a significant shift in the
focus around planning an estate.
For years, the traditional “A/B” or
“Credit Shelter” plan was utilized in
most situations because the federal
estate tax exemption was relatively
low and many plans revolved around
minimizing taxes. A major difference
now lies with the increased federal
estate tax exemption ($5.45 million
for 2016 per individual). With this
higher exemption, most families will
not be exposed to estate tax; however,
long-term capital gains tax rates can
now range from 15% to 33% when
considering top federal, state and
Medicare surtax.
Prior plans typically isolated
assets between spouses and avoided
including assets in one’s estate once
the individual had reached the federal
exemption amount. With the higher
exemption, coupled with increased
capital gains tax rates, it is often
advantageous to create a plan that
maximizes the “step-up in cost basis.”
Cost basis is typically the purchase price
of an asset; however, assets included in
one’s estate receive a current fair market
step-up which eliminates capital gains
tax up to that point.
The key to a quality estate plan
is applying the proper plan to each
family’s specific set of circumstances,
whether it be a pure tax planning
strategy, family dynamics, or dealing
with a chronic illness. 
Risk Management
Y
ou may have heard the old investment adage that there are
two major risks in life – dying too soon or living too long. In
today’s world, we really need to prepare for both. If you are
early in your adult life and you have young children you probably
don’t have significant savings yet. Dying is a major financial risk
because you could leave your family in the
lurch. This is why many young parents load
up on term life insurance. Protection if you
die too soon. Conversely, with extended life
expectancy many Americans are genuinely
worried about outliving their money. Most
of us know someone today in that situation.
If you had a daughter born in 2000, her life
expectancy at birth was age 84, versus 58
Steve Soden
for women born a century earlier. For a son
President & CEO
those numbers are age 80 compared with 52
for men born in 1900. The Social Security
Administration says a 65 year old woman today can expect to live
until age 87 on average, a man age 84. It should be noted that
these numbers are lowered by those who die relatively young
so they are not necessarily a good guide for financial planning
purposes.
The solution is often easy to say and hard to do. It is like
knowing the doctor is going to tell you to lose weight and exercise
more. Building wealth is very doable with discipline, long term
goals and a savings “blueprint” of how to achieve those goals.
Another old investment adage is it’s not how much you make, but
how much you save that matters. Working with an investment
advisor that understands you and how to manage risk is also
critical. The obsession with short term performance makes no
sense. Avoid the trap of reacting to media “hype” and think in
terms of decades where the predictability of positive results are
well documented. Down markets often create excellent buying
opportunities for the future. Experienced investment managers
understand that and their clients benefit in the long run.
The key is discipline and to start as early as possible so the power
of compounding returns can work for you over time. Always max
out investments in any available tax deferred plans and think long
term. Investing your own money is a challenging endeavor and
emotionally detaching yourself is often very difficult to do. Work
with professionals that understand the importance of diversification
and risk management to you and your long term financial health
and wellbeing. 
Because
BecauseMoney
MoneyMatters.
Matters.
33
COLLECTIVE FUND PERFORMANCE
NET PERFORMANCE (12/31/2015)
PENSION FUND
GPTC Equity Fund
ANNUALIZED
1 YR.
ANNUALIZED
3 YR.
ANNUALIZED
5 YR.
ANNUALIZED
10 YR.
ANNUALIZED
15 YR.
ANNUALIZED
20 YR.
ANNUALIZED
25 YR.
-2.48%
8.96%
9.67%
7.92%
11.12%
12.04%
11.32%
GPTC Large Cap Fund
6.48%
16.59%
11.72%
7.80%
N/A
N/A
N/A
GPTC USA Global Fund
2.05%
14.49%
10.78%
8.49%
5.39%
8.42%
N/A
GPTC Small Cap Fund
-3.37%
9.13%
8.05%
6.83%
8.98%
11.83%
N/A
GPTC Science & Technology
5.97%
16.74%
13.54%
10.50%
6.89%
N/A
N/A
GPTC Mid Cap Fund
-0.62%
10.23%
7.53%
6.96%
N/A
N/A
N/A
GPTC International Fund
-0.92%
4.21%
3.69%
N/A
N/A
N/A
N/A
GPTC Fixed Fund
-4.27%
6.19%
9.39%
7.37%
8.07%
8.27%
9.43%
ANNUALIZED
1 YR.
ANNUALIZED
3 YR.
ANNUALIZED
5 YR.
ANNUALIZED
10 YR.
ANNUALIZED
15 YR.
ANNUALIZED
20 YR.
ANNUALIZED
25 YR.
INDICES (12/31/2015)
MARKET INDEX
S&P 500
1.38%
15.13%
12.57%
7.31%
5.00%
8.19%
9.82%
Russell 1000 Growth
5.67%
16.83%
13.53%
8.53%
4.33%
7.63%
NA
Russell 2000 Growth
-1.38%
14.28%
10.67%
7.95%
6.03%
6.31%
NA
Russell Mid Cap Growth
-0.20%
14.88%
11.54%
8.16%
N/A
N/A
N/A
Russell 3000 Growth Index
5.09%
16.62%
13.30%
8.49%
4.46%
N/A
N/A
MSCI All Country World Index
Ex-US
-5.66%
1.50%
1.06%
N/A
N/A
N/A
N/A
BofA Merrill Lynch HY Master II
-4.64%
1.64%
4.84%
6.81%
7.33%
6.69%
8.83%
Past performance is not indicative of future results. Investments are not insured by the FDIC, are not deposits or other obligations of Great Plains Trust,
and are not guaranteed by Great Plains Trust. Investments are subject to risk, including possible loss of principal invested. Performance for the GPTC
Pension Funds are net of the 1% annual fee and include the reinvestment of interest and dividends.