The Upcoming Golden Age of Qualified Charitable Distributions?The Upcoming Golden Age of Qualified Charitable Distributions?

The Secure Act 2.0 of 2022 (the Act) represents the successful culmination of decades-long advocacy to extend qualified charitable distribution (QCD) status to split-interest gifts. A QCD is an otherwise taxable distribution to a qualified charity from an account (other than a Simplified Employee Pension plan or Savings Incentive Match Plan for Employees individual retirement account) of an individual age 70¹/2 or older. Let’s look at the Act’s primary qualification requirements to grant QCD status to split-interest gifts, how useful it is to do so and some recommendations for areas needing future legislative amendments. As written, the provision may not be as attractive as the non-profit community hoped.

Key Provisions

Effective on Jan. 1...