Strategies of Giving Under the SECURE Act
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) is a far-reaching bill that includes significant provisions aimed at increasing access to tax-advantaged accounts and preventing older Americans from outliving their assets.
Below are just a few of the changes that can affect gifts through retirement plans:
- The SECURE Act increased the RMD (Required Minimum Distribution) age from 70½ to 72. However, you can still make a Qualified Charitable Distribution (QCD) at 70½ .
- Heirs now have only 10 years to take Required Minimum Distributions. This means the government will get their taxes much sooner. Now’s a good time for a thorough tax review by an expert. In some cases, it might make sense to open a charitable remainder unitrust. to maximize legacy benefits.
Retirement plans are taxed at ordinary income rates when left to heirs, but there’s zero-tax when you donate such assets to the HeartMath Institute. So, leaving tax-favored assets to heirs is a smart tax strategy.
Therefore, if you’re considering a gift, consider making it through your retirement plan or a “tax free” gift though a Qualified Charitable Distribution (QCD, or the IRA Rollover), and leave less taxed assets, such as appreciated securities, to the ones you love.