The SECURE Act 2.0, passed by the U.S. Congress last year and signed into law in December 2022, aimed at helping Americans boost their retirement savings. But the law also includes new provisions related to philanthropy, and donors can now give to charities such as Longyear Museum in new ways—while reaping tax benefits.
Since 2006, individuals who are required to take an annual distribution from their retirement funds have been able to donate up to $100,000 to charities directly from individual retirement accounts (IRAs)—making a “qualified charitable distribution” (QCD) in lieu of part or all of that required distribution. The SECURE Act 2.0 expands the rules for QCD giving and provides a special one-time opportunity that may be of interest to Longyear donors.
Individuals who are 70½ years or older can now make a one-time distribution from an IRA of up to $50,000 for a charitable gift annuity, a charitable remainder unitrust, or a charitable remainder annuity trust with an eligible nonprofit organization. In order to qualify, these distributions must be made in the calendar year 2023 directly from an IRA. Because QCDs are tax free and reduce the level of an individual’s required distribution, which is subject to tax, these expanded opportunities may prove beneficial from a tax standpoint. Please consult with your professional advisor.
Longyear is able to enter into contracts for charitable gift annuities, charitable remainder unitrusts, and charitable remainder annuity trusts. If you’d like to support Longyear in this way, please contact our Development Office at 617-278-9000 x220.