Extension of IRA Charitable Rollover

The Pension Protection Act of 2006 amended §408(d)(8) to provide tax-free treatment of distributions from IRAs for the first $100,000 of distributions made to qualified charities.

IRA owners could use these distributions to satisfy the amounts under the required minimum distribution rules. To use this provision, an IRA owner must have attained age 701/2 and effected the distribution in 2006 or 2007.

Charities reported that this rule greatly increased gifts. With significant public support, the Emergency Economic Stabilization, Energy Improvement and Extension, and Tax Extenders and AMT Relief Acts of 2008 (collectively, “EESA”) extended this rule to distributions made in 2008 and 2009.