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Ira Rollover Update

The Tax Extender Package announced by congressional leadership December 16 would retroactively reinstate the current IRA charitable rollover for 2015 and make it a permanent part of the tax law going forward. The provision permits those over 70 ½ to make direct distributions to qualified charities of up to $100,000 each year from their individual retirement accounts. This action removes the annual debate over whether this provision, along with numerous other so-called “tax extenders” would be re-approved by Congress. A longstanding legislative priority of the Columbus Jewish Foundation, this permanence will provide donors with certainty in maximizing their support of charities of their choice.

The Tax Extender Package must still be approved by both the House (where a close vote is expected) and the Senate (support for the package is more bipartisan). The House is expected to vote on the package December 17 and the Senate vote could take place on as early as December 18. It is expected that the President will sign the bill if passed.

The Tax Extender Package makes the current law IRA Charitable Rollover permanent. It does not expand it to include qualified distributions to Donor Advised Funds or Support Foundations.

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