SECURE 2.0 Makes It Easier to Give and Receive

 SECURE 2.0 Act 

They say it’s better to give than to receive, but doing both while reducing your income tax liability may be appealing. The SECURE 2.0 Act, included in the federal spending bill passed in late 2022, created two new giving opportunities that could do just that. 

The new provision modifies the rules for qualified charitable distributions (QCDs), which allow a taxpayer who is age 70½ or older to contribute up to $100,000 annually — indexed for inflation — from a traditional IRA to a qualified public charity. The limit is $105,000 in 2024. While the contribution is not tax-deductible, the distribution — which would normally be subject to ordinary income tax — is not taxable. And the QCD can satisfy all or part of your required minimum distribution, which might otherwise increase your taxable income.

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January 2024 Newsletter Topics

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Newsletters 

• Bear Market Emotions: Strategy vs. Reaction

  Staying disciplined in building a well-constructed portfolio over time can help carry investors through the market’s rough spots.

• The Inflation Experience is Painful – and Personal

  This article discusses consumer price index categories, how they’re weighted, and the top drivers of inflation over the past year.

• Are You Eligible for Any of These College-Related Federal Tax Benefits?

  College students and their parents need all the help they can get when paying for college or repaying student loans. This article explains three federal tax benefits that could take some of the sting out of expensive college costs.

• Much Ado About RMDs

  This article provides an overview of the changes the SECURE 2.0 Act made and a brief explanation of how to calculate required minimum distributions from tax-advantaged retirement accounts.

More Newsletters »