IRA Rollover Provision Introduced by Key Senators
(April 28, 2008) The chair and ranking member of the Senate Finance Committee have introduced comprehensive tax legislation that includes an extension of the IRA Rollover provision until Dec. 31, 2009.
S. 2886, the Alternative Minimum Tax and Extenders Tax Relief Act of 2008, was introduced by Sens. Max Baucus (D-Mont.), the chair of the committee, and Charles Grassley (R-Iowa), the committee’s ranking member.
The IRA provision (Section 207 of the bill) would be retroactive back to Jan 1, 2008, when the provision expired. The provision would remain in its original form, applicable only to direct gifts of cash to charitable organizations (capped at $100,000 annually) from donors age 70½ or older.
AFP has already been in contact with key senators’ offices about moving the bill and the IRA Rollover provision forward. The association will also be working with the House of Representative and the House Ways and Means Committee to identify an appropriate legislative vehicle to move the IRA Rollover forward in that body.
“That both the chair and the ranking member have included this provision in such a key bill is a good sign,” said Paulette V. Maehara, CFRE, CAE, president and CEO of AFP. “However, we’ve got lots of work ahead of us in order to get the extension into law, and we’ll be contacting AFP members later in the year to encourage their members of Congress to support the bill.”
Other Charitable Giving Proposals
S. 2886 contains several other provisions related to charitable giving and fundraising, most of them extensions of measures that expired at the end of 2007:
- Enhanced charitable deduction for donations of food
- Extension of the charitable deduction for donations of books to include public schools
- Basis adjustment to stock of S corporations contributing property
- Increased deduction for certain contributions of land for conservation purposes