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The Setting Every Community Up for Retirement Enhancement (SECURE) Act eliminated the restriction that prohibited employed or self-employed taxpayers from making a tax-deductible contribution to an individual retirement account after attaining age 70½. But, this benefit comes with a catch. If a taxpayer ever makes a deductible IRA contribution during or after the year that the taxpayer attains age 70½, then for the rest of her life, the charitable gift exclusion will be reduced dollar for dollar for every dollar that was deducted over that time period.1 This lifetime recapture is much harsher than the same-year prohibition that exists when a charitable gift is made from a simplified employee pension (SEP)-IRA. The qualified charitable di...
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