House Passes Permanent Extension of IRA Charitable Rollover
On July 17, the U.S. House passed the America Gives More Act of 2014 (H.R. 4719), legislation that includes a permanent extension of the IRA charitable rollover. The bill passed on 277-130 vote.
Prior to its expiration on Dec. 31, 2013, the IRA charitable rollover allowed taxpayers age 70 ½ or older to direct up to $100,000 to an eligible charity without having the distribution count as income for tax purposes. If enacted, H.R. 4719 would permanently extend this important charitable giving incentive, essentially ending the need for Congress to pass temporary extensions of the provision. The bill also includes provisions on conservation easements, donating food inventory and extending the deadline for claiming charitable deductions to April 15.
While H.R. 4719 won approval in the House, the bill is unlikely to be considered in the Senate or signed by President Obama into law. While the IRA charitable rollover and other provisions in the bill have overwhelming bipartisan support, H.R. 4719 does not include any revenue raising provisions to offset the cost of the bill. Democrats in both the Senate and House have voiced objections to permanent extensions of tax law that are not revenue neutral. The Senate is currently considering a two-year retroactive extension of the IRA charitable rollover (through Dec. 31, 2015) as part of a larger tax-extenders package (S. 2260), although the bill is currently stalled due to a procedural dispute.
Given differences between the House and Senate approach, Congress is unlikely to pass and President Obama is unlikely to sign legislation that includes an extension of the IRA charitable rollover until after the November 2014 elections. The final legislation will likely include short-term extensions of the IRA charitable rollover and other provisions.