The U.S. Congress is proposing a one-year extension of an IRA rollover provision allowing tax-free disbursements to charities.
Rep. Charles Rangel (D-N.Y.), chairman of the House of Representatives’ Ways and Means Committee, included the extension of the Pension Protection Act of 2006 in a major tax overhaul bill introduced last week.
The act permits those with individual retirement accounts older than 70 1/2 to roll over up to $100,000 per year to a qualified charity tax free. It is scheduled to expire Dec. 31.
“The IRA charitable rollover is proving to be an effective fund-raising tool for Jewish federations throughout the country,” said William Daroff, vice president for public policy of the United Jewish Communities and director of its Washington office. “Federations expect to attract over $20 million in funds from the rollover that will help us care for the vulnerable – the poor, the sick, the aging.“