New Nonprofit Backs Permanent Charitable IRA Legislation

FOR IMMEDIATE RELEASE
March 31, 2015

(Washington, D.C.) A group of national leaders in planned giving and philanthropy have formed the Charitable IRA Initiative, a 501(c)(4) nonprofit organization with the sole purpose of encouraging members of the U.S. Congress and the president to enact permanent legislation enabling owners of IRAs to transfer their IRA assets to American charities. IRA rollovers could be outright gifts up to $100,000 per year or life-income agreements up to $500,000/year. There are no income taxes on IRA charitable rollovers.

President Signs Bill, IRA Charitable Rollover Is Back Through Dec. 31, 2014

The IRA charitable rollover has once again been renewed, but this time only for a few days—until the end of 2014!

Charitably minded taxpayers have enthusiastically embraced the IRA charitable rollover as an opportunity to transfer up to $100,000 each year to charity without it being treated as a taxable distribution. Despite its popularity since being introduced in 2006, the IRA charitable rollover has faced extinction several times and had actually expired on December 31, 2013. Now it has been reinstituted, but only until the end of 2014. The date December 31, 2014, looms as the last chance for taxpayers 70 1/2 or older to take advantage of this simple but powerful planning strategy (unless Congress intervenes again).

Senate Passes IRA Rollover, Waiting for President’s Signature

Both the House and Senate have extended, retroactively for 2014, the IRA charitable rollover and certain other charitable benefits. The legislation is now awaiting the president’s signature, which is expected this week.

House Passes One-Year Extension of IRA Charitable Rollover but Senate Still Needs to Act

On Wednesday, December 3, the U.S. House of Representatives passed a one-year extension of certain tax breaks that had expired on December 31, 2013. Included in the bill is the popular IRA charitable rollover. The Senate still needs to act, so the rollover has NOT yet been passed into law.

Novel Approach to Take with Donors Wondering About the IRA Rollover for 2014

It likely will be the beginning of December at the earliest before Congress decides if the IRA charitable rollover is going to be reinstituted for 2014. But there remains another philanthropic use of an IRA distribution that generates significant tax benefits—and provides a novel approach you can take with donors.