A New Law Brings Important Changes to your IRA
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The Setting Every Community Up for Retirement Enhancement (SECURE) Act took effect on January 1, 2020. It makes major revisions to rules for Individual Retirement Accounts (IRA) and other retirement savings plans.
Among many changes, the SECURE Act increases the age by which individuals must begin taking Required Minimum Distributions (RMD) from 70½ to 72. The new age limit applies only to those who turn 70½ after December 31, 2019.
However, the new law does not change the minimum age to make a Qualified Charitable Contribution (QCD/charitable rollover) from an IRA. If you are 70½ or older, you may still transfer up to $100,000 annually from an IRA to eligible charities tax-free.
You should consult with your tax or financial adviser on how the SECURE Act affects you. For more information about using your IRA for charitable giving, contact a Federation professional.