Secure 2.0

Here are some important things Secure 2.0 does that involve charitable giving

1) Increases the required minimum distribution (RMD) age

Secure 2.0 increases the age retirees must begin taking taxable withdrawals to 73 in 2023 and 75 by 2033, up from the previous 72. It does not, however, increase the age an IRA owner can make a qualified charitable distribution. That age remains at 70½.

How does this affect you?

The extension of the RMD age gives you more time to save and enjoy additional tax-free growth. It also can be significant if you do not want to begin withdrawing retirement funds during an unsettled economic climate, giving you more time for your stock portfolio to recover.

Adjusts the annual limit on direct gifts to qualified charities from your IRA

Currently, anyone 70½ or older can give up to $100,000 directly from their IRA to a qualified charity without paying income taxes on the distribution. Beginning in 2024, this number will be adjusted annually for inflation.

How does this affect you?

Your generosity can now keep pace with economic shifts.

Allows for a distribution from your IRA to fund a life income gift

If you are 70½ or older, you can fund a charitable gift annuity, charitable remainder unitrust, or charitable remainder annuity trust by making a one-time election for a qualified charitable distribution (QCD) of up to $50,000 (without being taxed on the distribution) from your IRA during a single calendar year. Note: This opportunity comes with special rules, so contact us to see if this option is right for you.

How does this affect you?

These types of life income gifts allow you to make a gift to a qualified charitable organization and receive lifetime payments to boost your retirement income, or provide a lifetime payment for you or your spouse.

We can help answer any additional questions about how the new retirement laws affect your charitable giving. Contact us at 212-650-6577 or to have a conversation about your legacy.

Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.

Last Updated: 03/06/2023 16:08