Proposed legislation that would make charitable contributions from IRAs permanently tax deductible has passed the House Ways and Means Committee.
The bill was introduced by and states that charitable contributions up to $100,000 from IRAs would not be taxed as income. If the law is passed, Americans age 70 and one-half would be eligible.
Aaron Schock
The bill, H.R. 4619, will make permanent a temporary tax provision that has offered American taxpayers ages 70 ½ and older to donate up to $100,000 from their IRAs and Roth IRAs without having to treat the withdrawals as taxable income. The provision was previously extended for 2012 and 2013 as part of the American Taxpayer Relief Act of 2012.
According to lead sponsor, Rep. Aaron Schock (R-Ill.), the bill would create certainty for taxpayers and the charitable organizations that depend on tax-free distributions from IRAs as a component of their annual fundraising efforts. Schock said that numerous national non-profit organizations have signaled early support for the measure.
“The American people and more than one million American non-profit organizations shouldn’t have to wait for Congress to finish comprehensive tax reform before they can make important decisions about charitable giving,” Schock said.
According to Schock, last year, total charitable giving in the U.S. passed $316 billion, with individual gifts comprising 72% of the total.
Rep. Mike Kelly (R-Pa.) is a co-sponsor of the bill.
House panel approves tax-free charitable giving from IRAs via IFAwebnews.com .
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