Special Update from
Mount Sinai on Planned Giving

President Signs Retirement Plan Legislation Into Law

A new year has brought more than just resolutions. It’s brought new laws and other changes that may affect your giving decisions. And with any economic change, you may be looking at your finances and wondering how you will be impacted.

The president just signed into law the omnibus spending bill that includes the SECURE 2.0 Act, a new retirement plan legislation that builds on the SECURE Act of 2019. The SECURE 2.0 Act aims to expand Americans’ ability to save for retirement and increase their options for doing so and this new law will take effect Jan. 1, 2023.

The new law includes retirement changes that may affect your saving and your giving. They may even make it easier for you to make a difference at organizations you care about. Read below to see how the SECURE 2.0 Act will impact charitable giving.

Three Key Changes That Will Impact Charitable Giving:

  1. Increases the required minimum distribution (RMD) age

    The new law 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 when an IRA owner can take a qualified charitable distribution. That remains at 70.

    How does this affect you?
    Simply put, the extension of the RMD age gives you more time to save. You will 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.

  2. Adjusts for inflation the $100,000 annual limit on direct gifts to qualified charities from your IRA

    Are you 70 or older? If so, you may know about a popular gift option that allows you to make a gift directly from your IRA to a qualified charity without paying income taxes on the distribution. Historically, the amount you could give was capped at $100,000 per year. This figure will now be adjusted annually for inflation.

    How does this affect you?
    This allows you to not only increase your giving but also ensure that your giving keeps pace with inflation. And you can make an impact—and see that impact—now rather than after your lifetime.

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

    If you are 70 or older, you can make a one-time election for a qualified charitable distribution of up to $50,000 (without being taxed) from your IRA to fund a life-income gift such as a charitable gift annuity, charitable remainder unitrust or charitable remainder annuity trust.

    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 a spouse, family member or other beneficiary.

Please check out our Planned Giving Site at: https://mountsinai.planmygift.org/

You can also reach out to us directly at:

Planned Giving Office