Retirement planning, no doubt, is an important discussion topic during your client meetings every year. In recent months, though, you may have observed an uptick in clients’ questions about their plans for retirement, perhaps related to:
- Required minimum distributions (“RMDs”) from qualified retirement plans, including questions prompted by media coverage of pending legislation known as SECURE 2.0.
- Stability of retirement investments, a topic that is covered widely in mainstream financial news.
- Rising interest rates and what that means for retirement, which is also a frequent topic in the media, and inflation’s impact on retirees.
Against this backdrop, the issues become particularly complex for philanthropic clients. Here are answers to questions you may be asking.
What’s happening with updates to the charitable giving components proposed in the SECURE 2.0 Act?
Right now, SECURE 2.0 includes a provision that would index the $100,000 Qualified Charitable Distribution (“QCD”) allowance for inflation and expand the technique to allow for a one-time transfer of $50,000 to a charitable remainder trust or another split-interest vehicle. While the legislation appears to stand a good chance of becoming law, it’s important to remember that a lot can happen as the House and Senate reconcile their respective bills before the legislation heads to President Biden for signature.
When should I reach out to the Omaha Community Foundation for help with QCDs?
The Foundation’s Donor Services team is happy to connect with you anytime! Contact us to learn more about QCDs from IRAs and how we can work with you and your clients to establish a Fund (regardless of whether the SECURE 2.0 enhancements become law) to support their financial, tax, and giving goals. Starting at age 70½, your clients can direct up to $100,000 per year to a qualified nonprofit (total $200,000 for a married couple), including the Omaha Community Foundation. This planning technique could help your client’s tax situation because they would not need to report the amount of the QCD as taxable income. As a reminder, while QCDs cannot be paid into a Donor Advised Fund, the Foundation offers a few Funds that would qualify to receive QCDs. Learn more here.