Did Secure 2.0 change the 70.5 age for QCDs?
I know that the age for RMDs on 1/1/2023 was changed to 73 [from 72].
Did Secure 2.0 change the 70.5 age for QCDs?
I know that the age for RMDs on 1/1/2023 was changed to 73 [from 72].
Did Secure 2.0 change the 70.5 age for QCDs?
Permalink Submitted by David Mertz on Tue, 2023-01-03 19:48
The QCD age requirement was not changed. The only changes SECURE 2.0 made with regard to QCDs is that one can now make a one-time election for a QCD to a split-interest entity (charitable reminder annuity trust, charitable remainder unitrust or charitable gift annuity) and the annual QCD limit will be adjusted for inflation after 2023.
Permalink Submitted by Robert Wright on Tue, 2023-01-03 20:05
Thank you DMx!
Permalink Submitted by Alan - IRA critic on Tue, 2023-01-03 21:28
While you can execute a QCD at 70.5, if you do so prior to an RMD year, there will be no current year tax savings even though the QCD will be non taxable. But there is a future benefit in the form of reduced future RMDs due to the QCD reducing the year end IRA balances.