House Passes IRA Rollover
(May 26, 2008) The House of Representatives passed a bill on Wednesday, May 21, that included an extension of the IRA Rollover provision.
The provision would allow donors age 70½ to “roll over” funds (up to $100,000) from their Individual Retirement Accounts (IRAs) and contribute them tax-free directly to a charity. The provision expired at the end of 2007, but the new provision would extend the bill for one year until Dec. 31, 2008, and make it retroactive to Jan. 1, 2008.
The bill, H.R. 6049, the Renewable Energy and Job Creation Act, contains a number of tax incentives that have expired.
It is unlikely the Senate will consider H.R. 6049, but instead is working on its own bill of tax extenders. The Senate Finance Committee is currently considering S. 2886, the Alternative Minimum Tax and Extenders Tax Relief Act, which also includes the IRA Rollover provision, although the Senate’s version would extend the provision for two years to the end of 2009.
The Senate is expected to pass S. 2886 or similar legislation in the near future, and then the two bodies of Congress will meet in a conference committee to iron out one final bill of tax extenders.
Prospects Good But Not Certain
In a recent article (“What Congress is Likely to Do to Your Tax Bill,” May 14), The Wall Street Journal rated the outlook for passage of the IRA Rollover this year as “very good.”
“However, there is absolutely no guarantee of passage, especially given how the upcoming elections could upset Congressional schedules and consideration of key legislation,” said Paulette V. Maehara, CFRE, CAE, president and CEO of AFP. “We still need members to make calls to their representatives and senators at the right time and encourage them to support the IRA Rollover. We cannot afford to become complacent, or we could lose this great incentive.”
Later in the year, AFP will be distributing calls to action with information and talking points on contacting members of Congress and urging them to pass the IRA Rollover provision.
For more information on the provision, click here.