Legislation that would extend the IRA Charitable Rollover through Dec. 31, 2010 and provide pension relief to nonprofits has cleared the House of Representatives. The bill is expected to be considered by the Senate this month.
H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010, passed by a vote of 245-171. The charitable rollover was included in a measure passed by the House in December but the pension relief provision was added when the Senate approved the bill, 62-36, in March, sending it back to the House.
The measure includes temporary funding relief to nonprofit and for-profit sponsors of defined benefit pension plans. Employers could stretch payments from seven years to either nine or 15 years while certain types of plans sponsored by nonprofits would be allowed to follow older, less-restrictive funding rules.
The IRA Charitable Rollover initially was enacted in 2006 and extended through Dec. 31, 2009. The provision allows individuals 70½ and older to donate a maximum $100,000 from Individual Retirement Accounts (IRAs) and Roth IRAs to charity and not have it count as taxable income.