Nothing is certain. However, the year-end budget bill proposed Tuesday includes new savings legislation dubbed SECURE Act 2.0.
If passed, one immediate change (effective 1/1/2023) raises the IRA required minimum distribution (RMD) age to 73 (it is currently 72 after being changed from 70.5 in 2019).
The RMD age would continue to rise over the next ten years, although different versions would change the timing of those age increases. However, 75 is the target age in 2033.
I share this now with no certainty of whether or when the legislation will be enacted. However, those with promotional material reminding donors of when they can make RMDs should be prepared to make changes in a couple of weeks!
Also, it appears changes are coming for QCDs. Starting in 2023, the current $100,000 limit for QCDs (qualified charitable distributions) will be indexed by inflation (meaning the amount will increase annually). The allowable age remains 70.5. Another likely change is that the Act will permit one-time gifts of $50,000 through a charitable trust or gift annuity.
And here's a good reminder from Forbes:
"There is a LOT to unpack in Secure Act 2.0 in the days, weeks, and months to come. And keep in mind, Congress makes the laws but often, the IRS must interpret and apply them. As seen this year with the confusion about the inherited IRA rules and RMDs, it sometimes takes a while to sort everything out. So stay tuned!"
John
John H. Taylor
Principal
John H. Taylor Consulting, LLC
2604 Sevier St.
Durham, NC 27705
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