Making a List, Checking It Twice

Preparing your end-of-year checklist? Don’t forget to consider CARES Act incentives for charitable giving available only until December 31, says 1746 Society member and estate planning expert Skip Fox ’75:

• You can still claim the $300 income tax charitable deduction if you are a non-itemizer, or $600 as joint non-itemizer filers.
• Your claim limit for gifts of cash to public charities — like Princeton — remains 100 percent of your Adjusted Gross Income for 2021.
• The 25 percent limitation on corporate charitable deductions (increased from 10 percent by the CARES Act) and the 25 percent limitation on contributions of food inventory (increased from 15 percent by the CARES Act) is extended to Dec. 31.

Additionally, the SECURE Act includes the following changes to defined compensation plans, defined benefit plans, and IRAs:

• You can hold off taking required minimum distributions until age 72 (previously the age requirement was 70 ½)
• Individuals of any age who are working and have earned income can contribute to a regular IRA.
• Beneficiaries of non-spousal IRA retirement plans are now required to withdraw the amounts in inherited accounts within 10 years (previously beneficiaries could take distributions over their lifetimes).

Contact the Gift Planning team for more information.