Secure Act 2.0’s Impact on Charitable Giving, Retirement Planning

A close up of hands holding a pen and magnifying glass looking at a financial document. Late last year, the Setting Every Community Up for Retirement Enhancement Act of 2022 (SECURE Act 2.0) was signed into law. The law builds upon the initial SECURE Act, passed in 2019, and includes dozens of new provisions aimed at helping individuals save more effectively for retirement. SECURE Act 2.0 also changes some of the rules governing certain charitable gifts of retirement assets.

Of particular interest to attorneys, accountants and wealth managers who advise philanthropists are the provisions starting midway through the bill. The bipartisan legislation will increase the required minimum distribution age, allow a larger catch-up contribution limit, facilitate rolling some Section 529 plans into Roth IRAs and generally expand access to retirement plans for moderate and lower-income employees.

Here are four important takeaways in SECURE 2.0 that you should know about.

1.     Increases the required minimum distribution (RMD) age

The new law increases the age retirees must begin taking taxable withdrawals to 73 in 2023 and 75 by 2033, up from the previous 72. It does not, however, increase the age when an IRA owner can take a qualified charitable distribution (QCD). That remains at 70½.

What charitable solution could this provide me?

Hundreds of funds at the Community Foundation are eligible to receive QCDs including unrestricted funds, agency funds, designated funds, field-of-interest funds, and scholarship funds. Donor-advised funds, however, still do not qualify.

2.     Adjusts for inflation the $100,000 annual limit on direct gifts to qualified charities from your IRA

If you are 70½ or older you may know about the IRA Charitable Rollover that allows you to make a gift directly from your IRA to a qualified charity without paying income taxes on the distribution. The amount you could previously give was capped at $100,000 per year. This figure will now be adjusted annually for inflation beginning in 2024.

What charitable solution could this provide me?

This will allow you to increase your giving, while also ensuring that your giving keeps pace with inflation. And you can make an impact—and see that impact—now rather than after your lifetime.

3.     Allows for a distribution from your IRA to fund a life-income gift

If you are 70½ or older, you can make a one-time election for a qualified charitable distribution of up to $50,000 (without being taxed) from your IRA to fund a life-income gift such as a charitable gift annuity (CGA) or charitable remainder trust (CRT). View IRA Rollover FAQs.

What charitable solution could this provide me?

These types of life-income gifts allow you to make a gift to a qualified charitable organization and receive lifetime payments to boost your retirement income or provide a lifetime payment for you or your spouse. CGAs and CRTs can work in tandem with various Community Foundation funds.

4.     Provides for Catch-Up Contributions for Retirement Plans

SECURE Act 2.0 provides an opportunity for Americans who haven’t saved sufficiently for retirement to catch up. Effective in 2023, workers aged 50 and older can increase their maximum catch-up contribution amount to an employer-sponsored plan from $6,500 per year to $7,500. Further, beginning in 2025, workers aged 60 to 63 who participate in employer-sponsored plans will have their eligible catch-up contribution limit increase to the greater of $10,000 or 50% more than the regular catch-up amount. This amount will be indexed annually for inflation.

However, there is one caveat to these limit increases: all catch-up contributions to employer-sponsored plans made at age 50 and older will need to be made to a Roth account in after-tax dollars for those earning more than $145,000 in the previous calendar year. Individuals earning $145,000 or less (to be adjusted for inflation going forward) will be exempt from the Roth requirement. Also, beginning in 2024, catch-up contributions to IRAs, currently limited to $1,000 per year, will be adjusted for inflation in increments of $100.

For more information about establishing a charitable gift annuity through The Community Foundation of Frederick County, contact our Philanthropic Services Department, at 301.695.7660 or email We’re always available to answer your questions about philanthropy or to schedule a personal consultation with both advisors and individuals – all at no cost.


The team at The Community Foundation of Frederick County is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only, it is not intended as legal, accounting, or financial planning advice.