Special Report: Congress Passes the Charitable IRA Rollover

At 7:32 PM (EST) this evening, Dec. 16, 2014, the US Senate passed HR 5771, the bill that retroactively extends several tax provisions, including the IRA Rollover. The law will expire on Dec. 31, 2014, without any grace period. However, it’s important to note that the measure will not become law until signed by President Obama, which is expected.

While approval of the IRA Rollover is good news, it unfortunately comes extremely late in the year. This means most nonprofit organizations will be unable to fully take advantage of the provision. Nevertheless, there are a couple of simple actions you can take:

  1. Look at your donor file to see which individuals have made gifts from an IRA in the past. Then, call those donors to let them know of the opportunity for 2014, assuming President Obama signs the measure. At the very least, email those donors.
  2. Email all of your older donors to alert them to the opportunity for them to give from their IRAs. Even if they don’t take advantage of the IRA Rollover, they’ll appreciate that you informed them about this late breaking news.

As in years past, the IRA Rollover allows individuals 70 ½ and older to donate up to $100,000 in IRA assets to a qualified charitable organization. The Charitable IRA Rollover is tax-free and not included in a donor’s adjusted gross income.

That’s what Michael Rosen says… What do you say?

UPDATE (Dec. 19, 2014): The White House announced today that President Obama signed HR 5771. The IRA Rollover is now law. Just remember, the law expires on Dec. 31, 2014.

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4 Comments to “Special Report: Congress Passes the Charitable IRA Rollover”

  1. Thanks for getting this out so quickly! Do we know when Obama’s pen might hit the paper?

    • Dan, thank you for your question. I’ve been trying to learn if and when Obama will sign the measure. Unfortunately, I still don’t have any information. As soon as I do, I’ll post an update here and on Twitter. Meantime, the clock keeps ticking.

  2. Michael, is it true giving in this manner still requires authorization year after year?

    • Marianne, thank you for your question. In the past, Congress has approved the IRA Rollover for one or two-year periods. While Republicans attempted this year to make the measure permanent, the Obama Administration threatened to veto the measure and most Democrats sided with The White House. That’s why we ended up with the renewal for just 2014. However, while the measure passed Congress on Dec. 16, President Obama has still not signed it. By delaying the signing of the bill into law, Obama is ensuring that fewer and fewer people will be able to take advantage of it.

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