IRA Charitable Rollovers Extended for 2010 and 2011

One component of the 2010 Tax Act enacted on December 17th that did not receive widespread attention was the extension of the direct IRA charitable rollover rules for 2010 and 2011. This provision permits taxpayers 70 ½ and older to donate up to $100,000 directly from their IRAs to public charities without having to account for the distributions as taxable income. Due to the late enactment in 2010, taxpayers are given until January 31, 2011 to make 2010 charitable contributions directly from their IRAs if they so desire. Taxpayers are not permitted to roll back their previously distributed 2010 distributions to their IRAs to take advantage of this provision, nor are taxpayers permitted to undo their 2010 distributions to charity. This provision was first enacted in 2006, but expired at the end of 2009. It is now extended until December 31, 2011.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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