By Baptist Message staff
ALEXANDRIA, La. (LBM) — On December 29, 2022, President Biden signed into law the Consolidated Appropriations Act of 2023, providing new charitable planning opportunities related to retirement plans.
Under the new law, the annual limit for qualified charitable distributions (QCDs) will be increased annually starting in 2024, indexed for inflation. Currently, individuals 70 1/2 years of age and older can distribute directly from their retirement plans to a charity, such as a church or other ministry, up to $100,000 annually tax-free.
Additionally, individuals aged 70 1/2 and up can now make an additional one-time $50,000 QCD for the purpose of creating life income plans, specifically charitable gift annuities and charitable remainder trusts. This opportunity allows individuals to turn a QCD into an income stream for them and leave a gift for ministry after their life.
Lastly, the new law also raises the age for required minimum distributions (RMDs) from retirement plans to 73 for those born between 1951 and 1959 and to 75 for those born in 1960 or later.
For more information on how these changes can help you achieve your charitable giving goals to advance the Kingdom, contact the Louisiana Baptist Foundation at (877) 523-4636 or contact@LBFinfo.org.