Understanding the SECURE 2.0 Act

At the end of 2022, new legislation was passed changing retirement account rules. The legislation, which is being called “SECURE 2.0,” builds on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 that also created changes for long-term retirement savings. The new law presents a new gift planning opportunity and other benefits, including:

Fund a charitable gift annuity from your IRA

Donors at least age 70 ½ are able to make a one-time qualified charitable distribution, up to $50,000, from their IRA to fund a charitable gift annuity. In addition to supporting the future of Johns Hopkins, you receive guaranteed lifetime income for you and/or your spouse, and the qualified distribution may count toward your required minimum distribution for the year.

Qualified charitable distribution now adjusted for inflation

Continuing through 2023, donors at least age 70 ½ are able to make a tax-free gift of up to $100,000 directly from their traditional IRA to Johns Hopkins. In 2024, the $100,00 limit will be adjusted for inflation. Transferring assets directly from a traditional IRA to support Johns Hopkins is an easy, tax-efficient way for donors to make an impact today.

Age to take required minimum distribution raised

The new law increased the age at which owners of IRAs or other qualified retirement plans, such as a 401(k), must start taking requirement minimum distributions to 73 in 2023 and 75 in 2033. The change does not affect the required minimum age for donors who wish to make a qualified charitable distribution. That age remains 70 ½.

IRA Gifts

Interested in making an outright or future gift using retirement assets?

Why I Give

“They saw you as people, not patients, and there's a real difference between those two,” Laura Schwinn says about the clinicians and caregivers in the Johns Hopkins Division of Cardiac Surgery, who treated her husband James for mitral valve disease.

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