NAICU Washington Update

House Ways and Means Committee Approves Permanent Charitable Tax Package; Bill Includes IRA Charitable Rollover

February 12, 2015

On February 4, the House Ways and Means Committee approved seven bills that would make permanent several temporary charitable tax benefits, including the IRA charitable rollover. Similar legislation was scheduled for fast track consideration in the House and Senate last December, but did not advance after a veto threat from the White House.

H.R. 637, which passed on a party line vote, would make permanent the benefit allowing tax-free distributions for retirement accounts for charitable purposes. The benefit is limited to individuals age 70½ and older, and cannot exceed $100,000 annually. The IRA rollover last expired at the end of 2014, after only being renewed briefly at the end of the year. Making this benefit permanent is a top NAICU tax priority.

Democrats voted against all of the bills because their costs were not offset with tax increases, although many spoke in favor of the rollover in particular. The new Chairman of the Ways and Means Committee, Paul Ryan (R-WI), said the bills were brought up for consideration outside of the tax reform process because “…we need to increase taxpayer certainty. The habit of extending tax provisions after they’ve expired should end. We need to give people the certainty they need, and fix this mess.”

It’s uncertain when the Senate might take up this or similar legislation. It’s also unclear if the White House is reconsidering its prior veto threat.

MORE News from NAICU