Congress Might Permit IRA Contributions to Charities to Continue

A provision by the Internal Revenue Service that permits people age 70-1/2 or older to contribute up to $100,000 of their IRA money to a charity each year without tax consequences is slated to expire at the end of the year.

However, with so many charities lobbying for its continuation, and with President Obama earlier this year proposing a one-year extension in his budget, it is possible it could be continued, at least for the short term, The Wall Street Journal reports.

“The current expectation is that an ‘extenders’ bill will be taken up late this year,” said Timothy Hanford, a tax consultant with ADC Strategies. “The betting is that all of the provisions expiring in 2009 will get extended.”

However, with so much on Congress’s plate, healthcare reform notwithstanding, it is possible that the measure may not be taken up until next year, and then enforced retroactively, Hanford said.