Congress Reaches Deal on IRA Rollover, But Major Hurdles Remain
The House of Representatives and the Senate have worked out a deal to make the IRA Rollover provision permanent, but the White House has indicated its objections to the overall bill.
Negotiators from the House and Senate reached agreement on 55 expired provisions, or “tax extenders,” including the IRA charitable rollover, as well as the deduction for conservation easement contributions and the deduction for gifts of food inventory. All three of those provisions would be made permanent under the bill, while others would get two-year reinstatements.
However, the White House has indicated that President Barack Obama would veto the bill as it currently stands. It’s not clear at this point if there are the votes in Congress to override a veto. White House concerns center on the cost of the bill, as well as its focus on tax breaks mainly favoring business.
The veto threat has forced Congress to look at other ways of passing different extenders, which has led to more discussions about reversing course and passing legislation to temporarily reinstate some of the tax provisions, including the IRA Rollover.
“AFP is strongly supportive of a permanent IRA Rollover, and we will be pushing for that,” said Andrew Watt, FInstF, president and CEO of AFP. “Congress agreeing to making it permanent is a huge step forward in our lobbying efforts, and I am grateful to the work of all AFP members—as well as our legislative partners—in getting us to this position.”
With the situation in flux—but with time of the essence as Congress is in a short “lame duck” session, AFP will keep members apprised of the situation. Government Relations Alerts will be distributed if action is needed immediately, and members can still send emails to Congress in support of the Charitable IRA Rollover provision by using the AFP website.