Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Sunday, December 20, 2015

Congress Makes Permanent IRA Charitable Rollover Exclusion

IRSIn 2006, Congress passed what proved to be a popular exclusion for person's over the age of 70 1/2 which allowed a donation from a traditional IRA directly to a charity for up to $100,000 without having to pay income tax in the distribution.  But, as Congress is wont to do, they created the tax break with a limited lifespan requiring re-authorization for it to continue. But now the exclusion has been made permanent, retroactive to January 1, 2015, since President Obama signed the new bill into law. Going forward, each person can make the donation to the qualified charity, no donor-advised funds or private foundations allowed, of their choice without negative tax implications. Kudos to Congress for the relatively fast action to preserve this popular addition to the tax code.

See Katherine La Beau, IRA Charitable Rollover, Council on Foundations, December 19, 2015.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.


Estate Administration, Income Tax | Permalink


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