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 Marine Corps Heritage Foundation. So, leaving tax-favored assets to heirs is a smart tax strategy.

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.

Contact Us

Planning your estate and legacy for future generations, including your charitable interests, takes careful evaluation. Consulting with the appropriate professionals can assist you.

Gayle Union, Estate Administration and Gift Planning Manager