Tax Cuts and Jobs Act
Strategies for Giving in 2021
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) is a far-reaching bill that includes significant provisions aimed at increasing access to tax-advantaged accounts and preventing older Americans from outliving their assets.
Below are just a few of the changes that can affect gifts through retirement plans:
Retirement plans are taxed at ordinary income rates when left to heirs, but there’s zero-tax when you donate such assets to The Hotchkiss School. So, leaving tax-favored assets to heirs is a smart tax strategy.
Therefore, if you’re considering a gift, consider making it through your retirement plan or a “tax free” gift though a Qualified Charitable Distribution (QCD, or the IRA Rollover), and leave less taxed assets, such as appreciated securities, to the ones you love.
Planning your estate and legacy for future generations, including your charitable interests, takes careful evaluation. I am here to help and will gladly discuss your needs, goals, and possible gift options.