November 19, 2014

Update on the IRA Charitable Rollover

Since 2006, individuals have been allowed to donate up to $100,000 from their IRAs to charities without having to record the distribution as taxable income. Individuals are able to begin taking distributions as early as age 59-1/2, but are required by federal law to begin taking them at age 70-1/2. Each year since 2006, the U.S. Congress has been extending the IRA rollover, but this year the decision has been delayed and, as of today, the rollover is not permissible. 


As the House and Senate return for the November lame-duck session, tax extenders are on the front burner. House Ways and Means Chairman Dave Camp (R-MI) advocates making several tax extender provisions permanent as part of the America Gives More bill package. The House passed bills with six business and six charitable provisions that would be permanent. While there is substantial cost with a permanent extension, Chairman Camp observes that the extenders previously were passed without any offsets or tax increases.


Camp enters the tax extenders negotiation with a hope that most or all of these 12 provisions could be permanent. He stated to reporters this week, “It has been the House’s position and my view that we should get as much policy permanent as possible.” When asked whether a one year extension would be acceptable, he noted that this is an alternative. Camp continued, “But I think we want to get as much policy as long as possible.”


Senate Finance Committee Chairman Ron Wyden (D-OR) is an advocate for the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act. The Senate Finance Committee approved 53 tax extender provisions for the years 2014 and 2015 in that act. The full Senate did not vote on the bill.


Wyden stated, “The Senate feels strongly about our package, but we know that we are in a negotiation.”
The Senate Democratic Whip is Richard Durbin (D-IL). In discussions with reporters, he stated that there may be some “horse trading” in these negotiations on the tax extenders.


Will the IRA charitable rollover be made permanent? Or will it be extended for all of 2014 and 2015? The “horse trading” that Senator Durbin mentions is the potential for the Senate to accept the House request for permanent status of some or all of the 12 provisions. In exchange for permanent status for some extenders, the House would approve the balance of the 53 Senate extenders for a period of two years. Because the legislative time is short, the outcome of these negotiations is highly uncertain. America is waiting with great anticipation for the House and Senate to announce their compromise plan.


If you are considering an IRA Charitable Rollover, you can follow news about the bill on our website or via social media channels. For specific information regarding any giving options, contact Brian Jackson, director of special initiatives and donor relations at (989) 755-0545 or