Passage of SECURE 2.0 Act incentivizes Americans to make charitable gifts in 2023.
SECURE 2.0 provides something for every American seeking greater security in providing for retirement. Some of the changes include increasing the age for required minimum distributions and boosting catch-up contribution limits.
For charitably inclined Americans, SECURE 2.0 encourages taxpayers to use their IRAs to support their favorite charity. Taxpayers over age 70 ½ are permitted to make qualified charitable distributions (“QCDs”) of up to $100,000 from their IRA each year and avoid recognizing income on the distribution. SECURE 2.0 enhances QCDs by providing:
For tax years beginning in 2023, a one-time opportunity to make a gift of up to $50,000 from an IRA to a charitable gift annuity or charitable remainder trust, provided the income interest is held by the taxpayer or the taxpayer’s spouse, or both.
An increase in the current $100,000 limit on QCDs beginning in 2024 by applying inflation indexing to the QCD limit.