Have you been wondering about the retirement plan legislation that passed earlier this year? These new laws may change how you think about your saving and your giving. Here’s what to keep in mind as 2024 winds down.

The required minimum distribution (RMD) age has gone up.

The age that retirees must begin taking taxable withdrawals increased to 73 in 2023 and will rise to 75 by 2033, up from the previous 72. However, the age an IRA owner can make a tax-free gift from their IRA did not go up. That remains at 70½.

Qualified Charitable Distributions (QCDs)

The SECURE Act 2.0 raised the QCD limit to $105,000 for 2024, offering a tax-efficient way for those 70½ and older to make charitable donations directly from an IRA, bypassing the need to report the distribution as income. Beginning in 2024, this limit will be adjusted annually for inflation. Your generosity can now keep pace with economic shifts.

You can now use your IRA to fund a gift that pays you.

If you are 70½ or older, you can now fund a charitable gift annuity or charitable remainder trust by making a one-time election of up to $53,000 (without being taxed on the distribution) from your IRA during a single calendar year.

A gift annuity allows 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 you or your spouse.

Hot tip: Higher payout rates and this new funding option for gift annuities make it an excellent time to consider this gift that pays you income for life.

Standard Deduction Considerations

With the standard deduction now at $14,600 for single filers and $29,200 for married filers, fewer taxpayers may itemize. Charitable "bunching" strategies—where donors make two years’ worth of donations in a single tax year—can increase total deductions above the standard, allowing taxpayers to itemize deductions and maximize charitable tax benefits​.

Let’s Talk!

We can help answer any additional questions you might have. Contact Robin Israel at (760) 516-2018 or risrael@seacrestfoundation.org to have a conversation about making an even greater impact on the lives of Seacrest seniors in need.