2024 Shareholder Benefit Taxability Information
Dear Fellow Shareholders:
I hope you had a wonderful holiday season and your year is starting off to a great start. I am pleased to provide you with some important news. First off, I want to provide you with the information regarding taxability of your Shee Atiká Fund Endowment (SAFE) distributions as well as scholarships and funeral benefits, which were paid out of Shee Atiká Incorporated (SAI) and Shee Atika Benefits Trust (SABT).
Shee Atiká Fund Endowment (SAFE) Distributions
We are pleased to report that 100% of the distributions you received from SAFE in 2024 are nontaxable to shareholders. This means you will NOT have to pay federal income tax on these distributions. You will not be receiving any IRS forms from us regarding SAFE’s distributions and there is nothing to report on your 2024 federal income tax return.
Scholarship and Funeral Benefits
In 2024, we paid out scholarships and funeral benefits out of SAI and SABT. In April 2024, the Board unanimously approved a contribution from SAI operations to the Shee Atiká Benefits Trust. Because of this, there was ample income in SABT so that benefit payments to shareholders would not be taxable. However, payments made in the first quarter came from SAI, so some of those benefits will be taxable. The breakout is as follows:
SABT – All benefit payments made out of SABT are nontaxable to shareholders. This means you will NOT have to pay federal income tax on these distributions. You will not be receiving any IRS forms from us regarding SABT’s distributions and there is nothing to report on your 2024 federal income tax return.
SAI – 1) Funeral benefits paid out of SAI in 2024 will be taxable. These are payments made from January through the beginning of April 2024. Those who applied for a funeral benefit on behalf of a shareholder will be receiving a 1099-MISC form in the name of the deceased shareholder, which will need to be reported on the decedent’s final tax return.
2) Some scholarships paid out from January through the beginning of April 2024 will be taxable. Shareholders who attended an accredited school or university will not receive a 1099-MISC form and will not need to report the scholarship payments on their 2024 federal income tax return. Shareholders who did not attend an accredited school or
university will receive a 1099-MISC form and will need to report the scholarship payments on their 2024 federal income tax return.
Contribution to SAFE
Secondly, I would like to mention that the Shee Atiká Board was able to contribute $500,000 from Shee Atiká Incorporated operations to the Shee Atiká Fund Endowment. This contribution goes to principle and will help to continue building the fund to provide benefits to current shareholders as well as future generations of shareholders. This is the first time in over a decade that we’ve been able to make this kind of contribution from operations.
Please feel free to contact our Chief Administrative Officer, Ptarmica Garnick with any questions. You can call the office (or have your tax preparer call) and leave a message for Ptarmica, you can email your questions to info@sheeatika.com or you can use the contact us page on our website to send a message.
We thank you for putting your trust in us as a board and we look forward to continuing to serve with your best interests in mind.
Steve Karpstein
Board Chairman
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