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2021 Qualified Charitable Distributions from IRAs

“The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 changed the age for taking requirement minimum distributions (RMDs) to age 72.  Did it also change the age for making Qualified Charitable Distributions (QCDs)?”

 

ERISA consultants at the Retirement Learning Center (RLC) Resource Desk regularly receive calls from financial advisors on a broad array of technical topics related to IRAs, qualified retirement plans and other types of retirement savings and income plans, including nonqualified plans, stock options, and Social Security and Medicare.  We bring Case of the Week to you to highlight the most relevant topics affecting your business. A recent call with a financial advisor from Alabama is representative of a common inquiry related to charitable giving.

Highlights of the Discussion

Conclusion

Eligible traditional and Roth IRA owners and beneficiaries, including those with inactive SEP or SIMPLE IRAs, should be aware of the benefits of directing QCDs to their favorite charitable organizations.  Law changes and extensions have enhanced other giving options, making professional tax advice essential when making a gifting decision.

 

[1] [6] The SECURE Act also eliminated the maximum age limit for making traditional IRA contributions.