Feeling secure?

For those who are looking to continue saving for retirement, the SECURE (Setting Every Community Up for Retirement Advancement Enhancement) Act may provide some new opportunities for you.

The SECURE Act went into effect Jan. 1, 2020. A couple of things have changed in regards to individual retirement accounts (IRAs) that may affect your contributions to your favorite charity.

• The required minimum distribution (RMD) has increased from 70 ½ to 72.
• Individuals over age 70 ½ may still make IRA rollover contributions but are not required to take a distribution until age 72.
• Individuals over age 70 ½ with earned income may continue to make contributions each year. Previously, only Roth IRAs could be funded after age 70 ½.
• Beneficiaries of IRAs generally must distribute the accounts within 10 years, unless they qualify for one of the exceptions such as being a surviving spouse, minor child, or disabled individual.

What does this mean for each of us? It means that the senate realizes that many of us continue to work past age 70 and that savings should be able to continue as long as we have earned income. It also means that those who inherit IRAs will likely have a larger tax burden as they must receive distributions more quickly.

Considering rolling over part of your RMD to MUSC? Please contact our office and we would be happy to walk you through the process. For all of those who continue to make these charitable gifts each year, we thank you!

With gratitude,

Linda