What You Need to Know About New Retirement Laws
2023’s new laws include retirement changes that may affect your saving and your giving.
Increase in required minimum distribution (RMD) age
Retirees must now begin taking taxable withdrawals at age 73 in 2023, up from the previous 72. (That goes up to 75 by 2033.)This change gives you more time to save (or, in a wobbly economy, for your stocks to recover). You will enjoy additional tax-free growth.
Adjustment of the annual limit on direct gifts to qualified charities from your IRA
Currently, those 70½ or older can give up to $100,000 directly from their IRA to a qualified charity without paying income taxes on the distribution. Beginning in 2024, this number will be adjusted annually for inflation.
New way to fund a life income gift: a distribution from your IRA
If you are 70½ or older, you can fund a charitable gift annuity by making a one-time election of up to $50,000 (without being taxed on the distribution) from your IRA. Note: This opportunity comes with special rules, so contact us to see if this option is right for you.
We can help answer any additional questions you might have about how the new retirement laws affect your charitable giving. Contact Dr. David Durr, CFA, CFP® at 270-809-6912 or email@example.com to have a conversation about your legacy.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.