On December 29 President Biden signed the Consolidated Appropriations Act of 2023 (“Act”). Contained in the provisions of the Act is the new Secure Act 2.0, which addresses many issues related to retirement planning. For example, starting in 2023 the Act raises the age for required minimum distributions (RMDs) to age 73 for individuals born between 1951 and 1959 and age 75 for those born in 1960 or later. The Act also creates two new important charitable planning opportunities. Click here to read more.
As of January 5th, the New York Department of Financial Services have posted their maximum allowed rates for Charitable Gift Annuities. NY is using a return assumption of 5%. As the new ACGA rates use an assumption of 4.25%, the newly released ACGA rates are lower than the maximum rates allowed by NY. This means charities in NY, and those registered in NY, can continue to use the suggested maximum ACGA rates for single and joint CGA gifts and remain in compliance with NY regulations. The ACGA continues to work directly with NY to update the statutes to avoid this conflict in the future.
The ACGA continues its work with regulators in New York State regarding maximum allowable charitable gift annuity payout rates. For more information on the background and the solution we are working on with the New York Department of Financial Services, please click here to read more.
