Latest Advocacy Alert
December 17, 2014
IRA Charitable Rollover Returns—For a VERY Limited Time!
Congress has reinstated the IRA Charitable Rollover only for the remainder of 2014, after much debate and several attempts for longer or permanent reinstatement.
Just prior to adjourning for the year, the House voted on a provision that would make the IRA Rollover, and two other charitable giving incentives, permanent. While all three charitable provisions have broad bipartisan support, politics surrounding how to pay for the cost of the measure prompted a White House veto threat, and the bill was just eight votes short of winning the 2/3 majority needed for moving ahead.
The President will soon sign into law a package of short-term tax provisions that includes reinstating the IRA Charitable Rollover only through December 31, 2014. The IRA Charitable Rollover has proven to generate new and increased charitable donations for orchestras in the years it has been available. Unfortunately, the provision has undergone several cycles of expiring and being renewed, leaving many donors confused about the status. Here are the facts:
The IRA Rollover expired at the end of 2013, and is now retroactively reinstated for 2014. If donors aged 70 ½ and older instructed or instruct their IRA administrators to make a distribution of up to $100,000 directly to a charity through December 31, 2014, that distribution will not be treated as taxable income for 2014.
It is always wise to advise donors to contact their IRA administrator and/or tax advisors for more detail as you inform them about the changing status of this important charitable giving incentive.
The IRA Charitable Rollover will expire again at the end of this month, which means this provision is NOT yet available for 2015. The League, in partnership with you, will continue to advocate to Congress for the IRA Rollover to be made permanent when the new Congress convenes next year.