Senate Passes Tax Extenders Bill

On December 16 the Senate passed a one-year tax extenders package.

The IRA rollover is included in this package, but the rollover will only be extended through the end of this year (2014), and it will expire again on December 31. The language is the same as in previous years in that you may not make a rollover gift directly to a donor-advised fund. Several options exist for making a difference in the community using a rollover contribution:

  1. You may support one or more of your favorite organizations through a designated fund at the Community Foundation;
  2. You may give to one or more areas of interest that are important to you through a field of interest fund;
  3. You may give to a Catalyst Fund or a Community Fund that will broadly benefit the greater Birmingham community.

President Obama is expected to sign the bill into law very shortly, perhaps as early as today. The IRA rollover extension for 2014 does NOT include language that would allow you to make a rollover early next year and have it count towards the 2014 tax year.

Donors wishing to make an IRA rollover gift this year will only have about two weeks to act in order for their rollover contribution to count.

If you are over 70 ½ and would like to take advantage of the opportunity to direct up to $100,000 from your IRA to one or more charitable organizations, you should speak to your broker or IRA administrator as soon as possible, since there is a very short window of opportunity.

If you have questions about adding to or establishing a charitable fund at the Community Foundation using a rollover contribution, Erin Stephenson and Anne Bethea are available to assist you.