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Government Relations
Legislative Bulletin
January 10,
2011
IRS Issues Statement Regarding Retroactively
Extended IRA Charitable Rollover Provision
The IRS has issued a statement saying that the
retroactively extended IRA Charitable Rollover
provision does not allow taxpayers to return
required minimum distributions taken last year
in order to make direct charitable IRA donations
for 2010.
The two-year retroactive extension of the IRA
Charitable Rollover that was signed into law in
late December reinstated the Rollover for 2010
and allows any eligible gift made by January 31,
2011 to be treated as a 2010 donation and be
used to satisfy the taxpayer’s minimum
distribution requirement for 2010. However, the
law didn't address the predicament of those who
wanted to make IRA donations last year but with
the reinstatement of the Charitable Rollover
uncertain, took required payouts instead.
IRS spokesman Eric Smith issued the following statement:
"Required minimum distributions (RMD) from an IRA received by
a taxpayer cannot be rolled over to an IRA. As noted on page
24 of the 2009 IRS Publication 590, Individual Retirement
Arrangements, "Amounts that must be distributed during a
particular year under the required distribution rules are not
eligible for rollover treatment." Moreover, there's no
provision in the Tax Relief, Unemployment Insurance
Reauthorization and Job Creation Act Of 2010, nor any hint in
the Committee report for such RMD recontribution." |
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