Changes for Qualified Charitable Distributions

During the recent 2020 NTSA Summit, Susan Diehl updated attendees on a number of changes resulting from the Dec. 20, 2019 enactment of the SECURE Act.

 

Diehl’s discussion included changes affecting qualified charitable distributions (QCD) from IRAs. For tax years beginning 2020, there is no longer an age restriction for making contributions to an IRA. However, deductible contributions made by those who are 70½ and older due to this change will affect allowable QCD amounts allowed for these individuals in the future.

 

Beginning in 2020, QCDs are reduced by the aggregate deductible IRA contributions made by an individual age 70½ and older in an effort to curb potential abuse. The maximum for QCDs for 2020 and beyond is $100,000, the age for QCDs remains 70½ (even as the required minimum distribution age rises to 72).

 

Diehl also informed attendees of the potential expansion of QCDs to qualified plans and 403(b)s under legislation introduced by Sens. Rob Portman (R-OH) and Ben Cardin (D-MD).
 
Heather Mondor is Director of Compliance, Carruth Compliance Consulting.