On December 29, 2022, the SECURE 2.0 Act was signed into law as part of the Consolidated Appropriations Act, which enhances charitable giving opportunities from Individual Retirement Accounts (IRAs). The new law affirms the Qualified Charitable Distribution (QCD) is permanent for those 70 ½ years of age and older, up to $100,000 annually. Beginning in 2024, the maximum annual QCD will increase based on inflation. The QCD is a distribution made directly from an IRA to a public charity. The QCD transfer avoids federal income tax and satisfies all or part of a required minimum distribution.
Also, as of January 1, 2023, a QCD may be elected as a once-in-a-lifetime distribution of up to $50,000 to establish a charitable remainder trust* or charitable gift annuity. This election may be combined with additional QCDs up to a total of $100,000.
For example, a 73-year-old who has a required minimum distribution of up to $50,000 could use this election to satisfy that required minimum distribution, avoid federal income tax on the transfer, and create a charitable gift annuity paying 6.3 percent annually for life.
To learn about this new opportunity and charitable giving options, please contact the Estate and Gift Planning Office at Rutgers University Foundation at giftplanningoffice@ruf.rutgers.edu.
*Various restrictions apply with a charitable gift annuity and charitable remainder trust. The QCD may not be elected to contribute to a previously funded charitable remainder trust. All charitable giving decisions should be made based on your specific circumstances and after consulting with your personal advisers.