Numerous changes to retirement accounts have come through two SECURE Acts, which took effect in 2020 and 2022. Yet one thing has remained constant: the age eligibility for making a tax-free withdrawal from an IRA that is paid directly to a qualified charity.

Called a QCD, or qualified charitable distribution, the IRA owner must be at least age 70 1/2 at the time of the QCD withdrawal -- see IRS Publication 590-B (tinyurl.com/577djj2n). Age 70 1/2 used to be the age for starting required minimum distributions (RMDs) from retirement accounts, but that age requirement has been climbing since 2019, from 70 1/2 to 72 to the current age of 73 (with 75 set to arrive within the next decade).

A reader who inherited an IRA from someone well over 70 1/2 who had been taking QCDs (and RMDs) pushes the age question a little further. "Henry" wants to know if he can take QCDs from the IRA he inherited, even though he himself is under age 70 1/2. When he wrote to me, Henry pointed out that he did some research on his question and remarked: "I'm not finding any exceptions in IRS literature to the age rule."

Henry is right about the lack of exceptions.

IRS Notice 2007-7 supports the conclusion that QCD age 70 1/2 applies to beneficiaries of inherited IRAs (tinyurl.com/4hpf2kxa). Question 37 in the notice deals directly with Henry's situation: "Is the exclusion for qualified charitable distributions available for distributions from an IRA maintained for a beneficiary if the beneficiary has attained age 70 1/2 before the distribution is made?"

The answer? "Yes. The exclusion from gross income for qualified charitable distributions is available for distributions from an IRA maintained for the benefit of a beneficiary after the death of the IRA owner if the beneficiary has attained age 70 1/2 before the distribution is made."

Henry will need to wait until he is over 70 1/2 before he can take a QCD as the IRA beneficiary. That's too bad, since Henry does need to take RMDs from the inherited IRA, which trigger income taxes.

With no QCD available to him until he is QCD age, he does have other options to soften the tax bite while contributing to charity. For example, he can make a charitable contribution by writing a check to a charity using non-IRA money.

The tax savings won't be quite as large as a full offset that QCDs offer -- that is, if your RMD is $10,000 and your QCD is $10,000, your tax on the RMD is zero. If you can't do a QCD but instead donate $10,000 to charity from a non-IRA account, you would qualify for a charitable tax deduction, but the amount of the deduction would depend on your tax situation.

To get a sense of what that deduction would be in your situation, experiment with the Charitable Giving Tax Savings Calculator online at tinyurl.com/2xuethnz. The calculator is a tool offered by Fidelity Charitable.

Before leaving the topic of QCDs, there is a change in the maximum that can be donated to charity through a QCD. Starting in 2024, the maximum that can qualify for a QCD ($100,000) will increase annually. For 2024, the limit is $105,000 (tinyurl.com/3s4w73tb). Note that each spouse can do his or her own QCD, provided the spouse meets the other requirements, including being 70 1/2 or older.

As always, I caution you that while we can talk about general concepts in this column, you need to visit with your accountant or tax adviser before taking any action on RMDs, QCDs, charitable gifting or taxes. These decisions will be personal to you, based on your unique circumstances.

If you have topic ideas or questions that I can address in this column, I encourage you to write to me at readers@juliejason.com. It's always good to hear from you.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

If you have a My Social Security online account, there is a change coming to the way you log in.

The Social Security Administration (SSA) announced in July that customers who created an online account (e.g., a My Social Security account) "before September 18, 2021, will soon be required to transition to a Login.gov account to continue access to their online services" (tinyurl.com/3p7rekud).

The change is being made to "simplify your sign-in experience and align with federal authentication standards," Dawn Bystry, associate commissioner in the Office of Strategic and Digital Communications, wrote in a blog on the SSA website (tinyurl.com/4h787bmm).

Bystry added that in the "near future," all users will "need to have an account with one of our two Credential Service Providers (CSP) -- Login.gov or ID.me" in order to access an SSA personal account.

With an SSA online account, users can manage the benefits they receive, get an estimate of future benefits, request a replacement Social Security card, check the status of an application, set up or change direct deposit and, if they choose, get available notices online instead of by mail.

If you are unfamiliar with Login.gov, it is an official website of the U.S. General Services Administration and provides a secure service used to sign in to participating government agencies. Once you have established a Login.gov account, you can use it to access any agency that partners with Login.gov (tinyurl.com/ykkd7ftx). Among those using the service are USAJOBS (U.S. Office of Personnel Management) and the Small Business Administration.

ID.me is a "next-generation digital identity network that simplifies how individuals securely prove their identity online," according to the ID.me website (tinyurl.com/5zufxyd9), which also notes that it is used by 16 federal agencies. The IRS uses ID.me for its online accounts for individuals, businesses and tax professionals (tinyurl.com/4xxk458u).

The SSA notes that if you already have an existing Login.gov or ID.me account, you do not need to create a new one.

As an example, if you do not have a Login.gov account and decide that is the option you want to use, you can transition your Social Security account by signing in with your Social Security username. You will then see online instructions with details on how to log in with Login.gov (if you already have an account) or how to create a new account using Login.gov.

Note that Login.gov requires another authentication method (known as multifactor authentication, or MFA) along with a password to access your account. (ID.me also has MFA.) According to Login.gov, "We use MFA as an added layer of protection to secure your information." You can review the details at tinyurl.com/47m99de3.

Among the authentication options are face or touch unlock (described as "using a scan of your face or fingerprint, entering your PIN or pattern, or scanning a QR code"), a security key ("a physical device that you can connect to your computer or mobile device to add an extra layer of protection to your Login.gov account") and a text message or phone call, with which you will receive a unique one-time code. Login.gov describes text messages and phone calls as convenient, but adds that they are "extremely vulnerable to theft, hackers, and other attacks."

Login.gov also encourages a person to set up a second MFA option in case he or she loses access to a primary authentication (for example, you lose your cellphone).

Once you have successfully created a new Login.gov account, you will be notified that your existing SSA account will be linked to Login.gov. Going forward, you will use your Login.gov account to sign into your SSA account.

If you have difficulties using Login.gov, the service offers customer phone and chat support 24 hours a day at tinyurl.com/y7r3bs85. You can access ID.me's help center at tinyurl.com/6r83jc34.

More details on how to transition your SSA account are available at tinyurl.com/d6nd7756. If you have an SSA account, take the time to log in soon and, if needed, transfer it over to the new login method.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

Last week (July 19), the IRS and the Treasury Department issued final regulations that settle some debated issues about required minimum distributions (RMDs) for beneficiaries of inherited retirement accounts (tinyurl.com/bdesak4a).

The regulations, which take effect on Jan. 1, 2025, affect two acts that were adopted in 2019 and 2022 (SECURE 1.0 and SECURE 2.0).

SECURE 1.0 introduced the 10-year rule: With some exceptions, a person inheriting a retirement account needed to withdraw the entire balance by Dec. 31 "of the year containing the 10th anniversary of the owner's death" (tinyurl.com/ysyp697p).

The sticking point involved those owners of a retirement account who were already taking their RMDs when the 10-year rule was adopted. Would the beneficiaries have to continue RMDs, or could they wait until year 10 to empty out the retirement account?

The final rules make it clear. Confirming proposed regulations issued in February 2022 (tinyurl.com/3fd85w6v), RMDs started by the deceased owner of the retirement account need to be continued by the beneficiary (based on the beneficiary's age) for nine years, then the remainder of the account is distributed in the 10th year.

Now that we have clarity, we look back in time to those beneficiaries who inherited from owners who were already taking their RMDs. The critical time period? Retirement account owner deaths occurring in 2020, 2021, 2022, or 2023.

The IRS provided beneficiaries who inherited in those years temporary relief from penalties (excise taxes) if they did not continue RMDs (see IRS notices 2022-53; 2023-54; 2024-35).

Now, the final regulations confirm that these beneficiaries will not be penalized: "[I]f a distribution would have been required to be made to certain beneficiaries under these regulations had they applied before January 1, 2025, then: (1) a plan will not fail to be qualified for failing to make that distribution in 2021, 2022, 2023, or 2024; and (2) the taxpayer who failed to take the distribution will not be assessed an excise tax for failing to do so. This relief applies with respect to a beneficiary who is a designated beneficiary of an employee who died in 2020, 2021, 2022, or 2023, and after the employee's required beginning date [RBD]" (tinyurl.com/bdesak4a). Note: The RBD triggers RMDs.

The relief does not apply to "eligible designated beneficiaries" (EDBs), who are not limited to the 10-year rule and have other options when it comes to an inherited retirement account.

EDBs are defined in IRS Publication 590-B as "the owner's surviving spouse, the owner's minor child, a disabled individual, a chronically ill individual, or any other individual who is not more than 10 years younger than the IRA owner."

If you inherited an IRA in 2020 or later, you may want to consult with your accountant or tax adviser to determine next steps. For example, if you are not an EDB and you inherited an IRA from someone who died in 2021, you will still need to empty the account by 2031, and RMDs will be in effect beginning next year. You will want to make sure your future RMDs are calculated correctly, under the guidance of your tax adviser.

Another point of interest, if you inherited a Roth 401(k): RMDs were required from a Roth 401(k) (but not subject to income taxes) until SECURE 2.0 amended section 402A of the Internal Revenue Code to add subsection (d)(5). Starting now (2024), Roth 401(k) RMDs are no longer mandated.

Here is the bottom line: If you inherited a retirement account after SECURE 1.0 took effect at the beginning of 2020, talk with your accountant or tax adviser to make sure you understand your RMD requirements going forward.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION