Senate Committee Passes IRA Rollover Extension

Advocacy Update

The Senate Finance Committee advanced a bill for temporary reinstatement of tax extenders–including the IRA Charitable Rollover–during a markup on July 21. The IRA rollover allows donors ages 70 1/2 and older to make tax-free contributions to charitable organizations of up to $100,000 directly from their IRA. This provision expired at the end of 2014 and has been in a cycle of expiration and reinstatement for the past several years. PAA will join other national nonprofits in visits to Senate offices this week, urging lawmakers to support this important provision.

The Finance Committee’s markup followed the recently released reports from the Senate Finance Committee Tax Reform Working Groups. The Working Group on Individual Taxes considered two options for reinstating the IRA Rollover: 1) permanently reinstating the provision as it currently exists; or 2) permanently reinstating it, expanding the types of charities eligible to receive contributions, and increasing or removing the $100,000 cap. 

The working group acknowledged that if the IRA rollover is only extended temporarily, donors may face uncertainty when planning their gifts, and this could diminish charitable giving. This uncertainty also extends to nonprofit arts organizations whose community programs and services often utilize this kind of support. PAA continues to advocate for permanent reinstatement of the IRA rollover. You can learn more about the impact of the Rollover in the PAA Charitable Giving Issue Center.