You may want to review the laws and other changes that may affect your giving decisions.  The laws include retirement changes, known collectively as “Secure 2.0,” that may affect your savings and your giving.  They may even make it easier for you to make a difference at the organizations you care about.

Charitable giving implications:

1. Increases the required minimum distribution (RMD) age – Secure 2.0 increases the age retirees must begin taking taxable withdrawals to 73 in 2023 and 75 by 2033, up from the previous 72.  It does not, however, increase the age an IRA owner can make a qualified charitable distribution.  The age remains at 70 1/2.

How does this affect me? 

The extension of the RMD age gives you more time to save.  You will enjoy additional tax-free growth.  It also can be significant if you do not want to begin withdrawing retirement funds during an unsettled economic climate, giving you more time for your stock portfolio to recover.

2. Required minimum distributions no longer apply to Roth 401(K)s - If you've opted to save in your employer's Roth 401(K) instead of a traditional tax-deferred account, your account is exempt from the RMD rules.

How does it affect me?

This rule went into effect at the start of 2024 and it puts the Roth 401(K) on par with the Roth IRA, which also doesn’t have required minimum distributions.

3. Charitable gifts can now lower your RMD by up to $105,000 per year - Are you 70 ½ or older?  If so, you may know about a popular gift option that allows you to make a gift directly from your IRA to a qualified charity without paying income taxes on the distribution.  Historically, the amount you could give was capped at $100,000 per year.  The figure is now adjusted annually for inflation beginning in 2024.

How does that affect me?  

This allows you to not only increase your giving but also ensures your giving keeps pace with inflation.  And you can make an impact – and see your impact – during your lifetime.

4. Allows for a distribution from your IRA to fund a life-income gift – If you are 70 1/2 or older, you can make a one-time election for a qualified charitable distribution of up to $50,000 (without being taxed) from your IRA to fund a life-income gift such as a charitable gift annuity, charitable remainder unitrust, or charitable remainder annuity trust.

How does this affect me? 

These types of life-income gifts allow you to make a gift to a qualified charitable organization and receive lifetime payments to boost your retirement income or provide a lifetime payment for you or your spouse.

We are here to help . . .

Please contact your financial advisor for additional information or contact StephanieCicale@hsinj.org to have a conversation about your legacy.

Leaving a Legacy

In 2020, we said goodbye to a loyal and generous supporter, Catherine “Cam” Cavanaugh.  She left her mark in the world in so many ways. 

Cam was a longtime Morristown resident, author of four books, and recognized for her contributions to preserving New Jersey history.  Princeton University even used one of her books in their environmental courses, and it later became the inspiration for an acclaimed documentary.

It was her passion for reading that connected her to Homeless Solutions.  Cam was in a book club with Jean Sidar, the mother of Betsey Hall, HSI’s retired CEO.  The club included several HSI supporters, and Cam’s interest was piqued hearing them talk passionately about the organization.  She went on a tour of the shelter and became a loyal supporter for almost 30 years.

As a reflection of Cam’s commitment to our mission, she included HSI in her estate plans and thoughtfully told the staff since she knew we had just launched a Legacy Society to provide for our future needs.  Cam’s legacy of generosity will live on as hundreds more homeless neighbors’ lives are transformed by the hand-up they receive at Homeless Solutions.

This information does not constitute legal advice nor does if substitute for legal advice. You should consult a qualified tax advisor before using any language below or signing any documents intended to be legally binding.

Specific Amount

I, ______________, hereby give, devise, and bequeath to Homeless Solutions, Inc. (EIN# 22-2491675), 3 Wing Drive, Suite 245, Cedar Knolls, New Jersey 07927, the sum of $________ to be used at the organization’s discretion. *

Percentage Amount

I, ______________, hereby give, devise, and bequeath to Homeless Solutions, Inc. (EIN# 22-2491675), 3 Wing Drive, Suite 245, Cedar Knolls, New Jersey 07927, __________percent of the rest, residue, and remainder of my estate, to be used at the organization’s discretion.*

Contingent Bequest

In the event the beneficiaries of bequests and devises herein predecease me, or, in the case of institutions, cease to be organizations described in section 501(c)(3) if the Internal Revenue Code, I _______________, hereby give, devise, and bequeath to Homeless Solutions, Inc. (EIN # 22-2491675), 3 Wing Drive, Suite 245, Cedar Knolls, New Jersey 07927, the rest, residue, and remainder of my estate to be used at the organization’s discretion.*

*Donors may also restrict their bequests to specific purposes.  Named endowments for specific program funds generally require specific minimum amounts to ensure 1) a fund’s long-term viability and 2) the fund’s ability to meet the program’s needs. For more information, call, email or write Stephanie Cicale, 3 Wing Drive, Suite 245, Cedar Knolls, New Jersey 07927; telephone 973-993-0900 X 120; email stephaniecicale@hsinj.org.

Sample Codicil Language for amending an existing will

I, [name], a resident of the County of [county], State of [state], declare that this is the codicil to my last will and testament, which is dated [date original signed].

I add or change last will in the following manner:

[List all specific changes or additions to the original will. Reference each section number of the will and the specific language you will be affecting]. This is where you could include a bequest to Homeless Solutions, Inc., 3 Wing Drive, Suite 245, Cedar Knolls, New Jersey 07927; EIN #22-2491675

Otherwise, I hereby confirm and republish my will dated [date originally signed], in all respects other than those herein mentioned.

I subscribe my name to this codicil this [day, e.g. 1st] day of [month], [year], at [full address where signed], in the presence of [full name of first witness to codicil], [full name of second witness to codicil], and [full name of third witness to codicil], attesting witnesses, who subscribe their names here in my presence.