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December 15, 2014

Congress Likely to Revive Tax Break for IRA Rollover Gifts

Congress is poised to retroactively extend a tax break on charitable donations from individual retirement accounts that expired at the end of last year, according to The Wall Street Journal. The provision would allow account owners and beneficiaries over the age of 70½ to donate up to $100,000 in IRA assets without reporting the withdrawal as taxable income, in effect getting a deduction for the gift.

Lawmakers approved the tax break for two years in 2006 and have extended it three times for the same period. Experts expect the latest extension will be for only one year, covering donations from IRAs made between Jan. 1 and Dec. 31, 2014. “There is a history of retroactive extensions,” said Ed Slott, an IRA expert in Rockville Centre, N.Y. “My bet is that it will probably pass.”