Big hearts give smart
With proactive planning, you can reduce your taxable income and advance the bright future of healthcare in Central Texas.
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Our donors care deeply about the dynamic healthcare advances at Baylor Scott & White Health. Your support is integral in saving and improving lives.
As you consider your 2023 path to charitable giving, you may be wondering, “How will the new laws—with their slate of changes, known collectively as the Secure 2.0 Act—impact my giving strategy this year?”
At Baylor Scott & White Central Texas Foundation, we offer key takeaways and insights to help you build your legacy. The new changes are designed to give you added flexibility so you can feel good about giving to organizations and causes that matter most to you.
To learn more, contact Jordan Castillo, JD, CFRE, at Jordan.Castillo@BSWHealth.org or 254-899-3776.
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In essence, the Secure 2.0 Act:
- Increases the required minimum distribution (RMD) age.
The new law increases the age retirees must begin taking taxable withdrawals to 73 in 2023 and 75 by 2033, up from the previous age of 72. It does not, however, increase the age when an IRA owner can take a qualified charitable distribution. That remains at 70½.
How does this affect me?
Simply put, the extension of the RMD age gives you more time to save. You will enjoy additional tax-free growth. That can be significant if you do not want to begin withdrawing retirement funds during an unsettled economic period, giving you more time for your stock portfolio to recover.
- Adjusts for inflation the $100,000 annual limit on direct gifts to qualified charities from your IRA.
Are you 70½ or older? If so, you may know about a popular gift option that allows you to make a gift directly from your IRA to a qualified charity without paying income taxes on the distribution. Historically, the amount you could give was capped at $100,000 per year. This figure will now be adjusted annually for inflation beginning in 2024.
How does this affect me?
This new adjustment allows you to not only increase your giving but also to ensure that your giving keeps pace with inflation. And you can make an impact—and see that impact—now, rather than after your lifetime.
- Allows for a distribution from your IRA to fund a life-income gift.
If you are 70½ or older, you can choose to make a one-time, qualified tax-free charitable distribution of up to $50,000 from your IRA to fund a life-income gift. That gift can be a charitable gift annuity, charitable remainder unitrust or charitable remainder annuity trust.
How does this affect me?
Life-income gifts like these give you the best of all worlds. You can 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, or both.
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Please consult your legal or tax services provider regarding the implications of a planned gift based on your personal facts and circumstances. Baylor Scott & White Central Texas Foundation does not provide legal or tax advice.
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