A provision that expired last year permits people age 70-1/2 to give money from their IRA to charities without incurring taxes could be reinstated.
There is a good chance that the government will restore a provision to IRAs permitting people age 70-1/2 or older to contribute up to $100,000 a year to a charity without incurring any tax consequences, The Wall Street Journal reports. In addition, the contribution counts toward the required minimum distribution.
Late last year, the House approved legislation that would extend it through the end of 2010, and a number of Senators appear to be in favor of it. In addition, tax experts say that charities are strong lobbyists on the Hill.