The IRA Charitable Rollover was first enacted in 2006 and expired on December 31, 2009. The provision allowed individuals aged 70½ and older to donate up to $100,000 from their Individual Retirement Accounts (IRAs) to public charities without having to count the distributions as taxable income. Since the provision was first enacted, Americans have made millions of dollars of new contributions to nonprofits -- including social service programs, religious organizations, arts and cultural institutions, schools, and health care providers -- that benefit people every day.
Status
Despite efforts to trim the costs, the Senate has been unable to pass a House-passed package (H.R. 4213) of tax and benefits extensions. Senate Majority Leader Harry Reid (D-NV) has, for the time being, pulled the extenders legislation from the Senate floor schedule to focus on a separate small business jobs measure.
The House of Representatives passed the American Jobs, Closing Tax Loopholes, and Preventing Outsourcing Act of 2010 (H.R.4213) on May 28. The bill would extend the IRA Rollover and a number of other expired tax provisions through December 31, 2010; extend unemployment insurance benefits through November, 2010; and delay scheduled cuts in Medicare payments to doctors until January 2012.
Independent Sector sent a letter to Chairman Sander Levin (D-MI) urging Congress to act swiftly because the current uncertainty regarding the re-instatement of this important tax relief measure impedes the ability of taxpayers to transfer gifts that are critical to providing much needed programs and services.
Contact your Senators to urge immediate action on legislation (HR 4213) to re-instate the IRA Rollover as quickly as possible. See suggested talking points and a sample letter.
Email Independent Sector to share your stories about how contributions through the IRA Rollover has or could help your organization better serve its community.
