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Posted December 16th, 2015

What’s Going on with the Charitable IRA Rollover?

Updated 12/18/15, 9:58am CST

The IRA Rollover provision, which allows individuals over 70½ to make direct distributions from their IRAs to a qualified charity on a tax-free basis, is part of a larger bill that includes a number of popular provisions that are widely expected to be passed before the end of the year.

In the past, the charitable IRA provision has been extended so late in the year that many donors had already taken their minimum required distributions. Nonprofits often found it impractical at that point to communicate with prospective IRA contributors in time for them to act before a December 31 deadline.

Keep in mind that in every year the IRA gift legislation has been extended the benefits have been retroactive to the beginning of that year. Under these circumstances, some have suggested that potential donors adopt the Nike slogan and “Just Do It.” If the provision is passed, the gifts are covered; if the provision is not passed, the amount directed to charity will be reportable as income but will also count as a charitable deduction, resulting in a wash for tax purposes for those who itemize and can fully deduct the gift amount.

Here are a few updates we’ve seen this week:

12/15/15, 6pm ET: http://thehill.com/policy/finance/263323-congress-racing-to-finish-16t-spending-and-tax-cut-package

12/16/15, 9:43am ET: Looking like Friday before the House votes on this. http://thehill.com/homenews/house/263422-house-to-vote-friday-on-spending-bill

12/16/15, 12:21pm ET: The White House weighs in: http://thehill.com/homenews/administration/263457-white-house-praises-sweeping-omnibus-tax-deal

12/16/15, 12:17pm ET: What is in the proposed tax deal? http://thehill.com/policy/finance/263445-whats-inside-the-650b-tax-deal

12/16/15, 9:24pm ET: changes to proposed tax bill rejected, bill still expected to go to vote on Friday. http://thehill.com/homenews/house/263538-leadership-allies-reject-effort-to-move-funding-bill-to-the-right 

12/17/15, 1:03pm ET: More progress on the tax bill in the House. http://thehill.com/policy/finance/263590-house-approves-622b-tax-package

12/17/15, 1:30pm ET: Senate leadership saying there will be no delays on the tax bill vote. http://thehill.com/homenews/senate/263603-rubio-threatens-to-delay-spending-bill-over-visa-concerns

12/18/15, 10:54am ET: Senate agrees to move spending bill to a final vote, which should take place soon. http://thehill.com/blogs/floor-action/senate/263709-senate-moves-toward-passage-of-18-trillion-tax-and-spending-deal

Keep checking back here for updated information on the Charitable IRA Rollover. We’ll also be sending out an email to everyone with some suggested donor language you can send to your supporters as soon as the law has passed and been signed.

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