Seacrest Village: (760) 632-0081 

New Tax Laws 2023

How New Laws May Affect Your Year-End Giving

Have you been wondering about the retirement plan legislation that passed earlier this year? These new laws may change how you think about your saving and your giving. Here’s what to keep in mind as 2023 winds down.

The required minimum distribution (RMD) age has gone up

The age that retirees must begin taking taxable withdrawals increased to 73 in 2023 and will rise to 75 by 2033, up from the previous 72. However, the age an IRA owner can make a tax-free gift from their IRA did not go up. 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. It also can be significant if you do not want to begin withdrawing retirement funds during an unsettled economic climate, giving you more time for your stock portfolio to recover.

The annual limit on direct gifts to qualified charities from your IRA will start adjusting for inflation

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.
How does this affect me?
Your generosity can now keep pace with economic shifts.

You can now use your IRA to fund a gift that pays you

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 during a single calendar year. Note: This opportunity comes with special rules, so contact us to see if this option is right for you.
How does this affect me?
A gift annuity allows you to 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.

Hot tip: Higher payout rates and this new funding option for gift annuities make it an excellent time to consider this gift that pays you income for life.

Let’s Talk!

We can help answer any additional questions you might have about how the new retirement laws affect your charitable giving as the year ends. Contact Shona Borevitz at (760) 516-2003 or to have a conversation about making an even greater impact in the lives of Seacrest seniors in need.