House OKs IRA Rollover

House Approves IRA Charitable Rollover, and Senate Expected to Consider Provision in the Fall.

The IRA charitable rollover took a big step toward being reinstituted this week when the House of Representatives passed a bill that would make it permanent.

The Senate is expected to consider charitable tax provisions sometime in the fall and may approve a two-year retroactive extension of the rollover; the Senate is not expected to go along with making it permanent.

The House Wednesday approved the “America Gives More Act,” a package of five changes to tax law designed to increase charitable giving. Included is another provision that would give donors up until tax day April 15 to make a contribution to charity that qualifies for the charitable deduction, rather than having to do so during the previous calendar year.

Many donors have used the popular IRA rollover since it was first instituted in 2006. Those aged 70½ and older could make a direct transfer of up to $100,000 to a charity from their IRA and not have to claim it as taxable income. This transfer could be made using their required minimum distribution. The rollover has been renewed by Congress several times; it expired at the end of 2013 but may now be available for 2014 and beyond, depending on the Senate.

A detailed description of the House bill is available from the Partnership for Philanthropic Planning at http://pppphilanthropy.wordpress.com/2014/07/18/advocacy-update-house-approves-h-r-4719-the-america-gives-more-act/