IRA Charitable Rollover

By Melinda Gustafson Gervasi
Under current law, the IRA charitable rollover exception is slated to end on January 21, 2012. Under the law a person aged 70 1/2 may make distributions of up to $100,000 from an IRA directly to a charitable organization and NOT have it count as a distribution of income.

I learned at the 45th Annual CLEW Tax workshop that on March 10, 2011, Senator Charles Schumer (D-NY) introduced the Public Good IRA Rollover Act of 2011 (Senate Bill 557 or H.R. 2502). Under the proposal the income tax exemption would become permanent, apply to people 59 1/2 years of age (instead of 70 1/2), remove the $100,000 cap, and allow rollovers to donor-advised funds, supporting organizations, and private foundations.

Currently the legislation is stuck in committee and is not moving forward. Please check back in the future for updates.

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