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:

1. The RMD (Required Minimum Distribution) age is now 73. However, you can still make a Qualified Charitable Distribution (QCD) at 70½ .
2. 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 St. Andrew's Episcopal School. So, retirement assets are best left to charity, while less heavily taxed assets (like appreciated securities) are better to leave to heirs.

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.