January Legacy Community Newsletter's Articles
New legislation called “SECURE 2.0” introduces significant enhancements to the original SECURE Act of 2019. The new act went into effect December 29th, 2022, and presents some new rules for those wanting to save for retirement or give charitably.
One of the most significant changes is that taxpayers may now make a one-time $50,000 Qualified Charitable Distribution (QCD) from their IRA to fund a Charitable Gift Annuity (CGA). And with the included inflation that started this year, that number has increased to $53,000.
A CGA is a contract between you and Focus on the Family, funded by a lump-sum gift that produces a fixed, lifetime income to you and a beneficiary gift to Focus.
This is the first time an IRA has been allowed to fund this type of income-producing tool and offers a fantastic opportunity to reduce your taxable estate and create a guaranteed income stream for life.
While there’s no charitable deduction for a QCD gift, it is free of federal income tax, can fulfill your Required Minimum Distribution (RMD), and is excluded from your gross income.
Considering these changes and the current rates for CGAs now could be a crucial time to put together your 2024 tax-advantaged strategy.
If you would like to see what a Charitable Gift Annuity funded by an IRA could look like for you, request a free illustration by contacting our team at 800-782-8227 or [email protected].
Visit SECURE 2.0 to read our full article and see what other changes are included in this new legislation.
