The SECURE Act 2.0 and its impact on philanthropy during retirement. What’s Inside: • Three things to know about the new legislation • Understand how you could be impacted • A new way to give with your IRA
Impact of SECURE Act 2.0 on Philanthropy Building upon the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 is a second version of the bill, known as SECURE Act 2.0, which was signed into law at the end of 2022. This new legislation introduces a variety of new rulings, some of which may impact your charitable giving in retirement. Here are three key provisions and how you may be impacted: 1 2 3 How this impacts me: For those approaching retirement age, the RMD age extension will allow the money in your IRA to grow an extra year tax-free. This added time could benefit you in challenging market times, allowing your nest egg to recover before mandatory withdrawals begin, potentially increasing the amount you would later consider for charitable donation. Increased age for required minimum distribution (RMD) to 73 How this impacts me: If you are 70 ½ or older, you can now take a one-time tax-free distribution from your IRA up to $50,000 and use the funds to form a charitable gift annuity (CGA). Recently increased payout rates for charitable gift annuities make this an ideal time to take advantage of this new option to maximize your giving. Allowance to earn income with a charitable gift from your IRA How this impacts me: Making a gift directly to charity from your IRA has become a popular way for individuals who are 70 ½ or older to lessen income taxes and fulfill their RMD. By adjusting the capped IRA gift amount an on annual basis, you will be able to increase your giving and make an even greater impact at Orlando Health. The $100,000 qualified charitable distribution limit will adjust annually for inflation starting in 2024
NEW in 2023 Generate lifetime income with a gift from your IRA With the SECURE Act 2.0 in place, you can now take a tax-free distribution from your IRA up to $50,000 (in one year only) and use the funds to form a charitable gift annuity (CGA). Couples may combine their distribution amounts to create a two-life annuity up to $100,000. A charitable gift annuity funded through your IRA will provide a lifetime income stream while counting towards your RMD in the year of your gift (for those age 73+). At the end of your life, the remaining value will be donated to the ongoing work at Orlando Health. Benefits of using your IRA to fund a CGA: • Create a meaningful impact for charity • Remove up to $50,000 from IRA • Potentially lower future RMDs • Counts toward RMD for those 73+ • Earn extra income • Lessen tax burdens For a personalized look at what a charitable gift annuity could do for you, use your phone’s camera to scan the QR code above. We encourage you to seek advice from your attorney or financial advisor regarding the variety of ways this bill may impact your future plans. Should you have any questions or concerns, please feel free to consult with our planned giving team. Our approach is to understand your unique situation and help facilitate philanthropic conversations with loved ones and your personal advisors in the community. To learn more about how you can create a charitable gift annuity or how to receive a personalized gift illustration, please visit us at OrlandoHealthPlannedGiving.com or contact the Office of Planned Giving at (321) 843-9844.
Orlando Health Foundation 3160 Southgate Commerce Blvd., Suite 50 Orlando, FL 32806 Leave a Legacy Planned Gifts to Orlando Health help secure a legacy of excellent medical care for our patients and families throughout Central Florida. There are a number of life-changing areas you can choose to support, including services for children and adults across a variety of healthcare needs. For a full listing of programs and facilities where your gift can make a difference, we encourage you to visit our website or talk with our team to learn more. Don’t forget to include Orlando Health in your will or trust. A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION FOR ORLANDO HEALTH FOUNDATION, A FLORIDA-BASED NONPROFIT CORPORATION (REGISTRATION NO. CH577), MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLLFREE 1-800-HELP-FLA (435-7352) WITHIN THE STATE OR VISITING THEIR WEBSITE LOCATED AT HTTPS://CSAPP.800HELPFLA.COM/CSPUBLICAPP/GIFTGIVERSQUERY/GIFTGIVERSQUERY. ASPX. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE. You may elect not to receive any further fundraising communications from the Orlando Health Foundation. To do so, you may write to us at Orlando Health Foundation, Attn: Director of Development/3160 Southgate Commerce Blvd., Suite 50/Orlando, FL 32806, call our toll-free line at 1.855.678.6889 or e-mail [email protected]. . Learn more about our planned giving options and which one is right for you. Go to: OrlandoHealthPlannedGiving.com We would love to hear your story and help you explore how you can make a future impact at Orlando Health. Call our team: (321) 843-9844 As a 501(c)(3) charitable organization, we welcome a variety of giving options. Please reference the following information when considering a gift: Orlando Health Foundation, Inc. 3160 Southgate Commerce Blvd., Suite 50 Orlando, FL 32806 Federal Tax ID: 59-2244943