FOR IMMEDIATE RELEASE
July 16, 1999
CONTACT: Lisette McSoud Mondello
SENATOR HUTCHISON APPLAUDS INCLUSION
OF ‘CHARITABLE IRA ROLLOVER' IN TAX BILL
Will make tax-free charitable giving easier
WASHINGTON, D.C. -- U.S. Senator Kay Bailey Hutchison (R-Texas) today lauded Senate Finance Committee Chairman William Roth's decision to add to the tax relief bill her legislation allowing tax-free transfers from an IRA to a charitable organization.
"Charitable giving is an American tradition, and this will make it easier to do," Senator Hutchison said. "We are going to provide a valuable new source of philanthropy for our nation's charities. Current law puts a roadblock in front of these kinds of donations."
Under Senator Hutchison's provision, individuals age 59½ or older would be allowed to move assets without penalty from an IRA directly to a charity, or into a qualifying deferred charitable gift plan, such as a charitable remainder trust, pooled income fund or gift annuity. Current law requires taxpayers to first withdraw the IRA proceeds, pay the taxes due, and then contribute the funds to a charity.
She introduced her "Charitable IRA Rollover Act" as free-standing legislation in May. Finance Committee Chairman Roth said Friday a version of it is being incorporated into his tax bill.
Her legislation has been endorsed by the American Red Cross, the American Association of Universities, the American Council on Education, the American Association of Museums, the American Institute for Cancer Research and 2,000 other charitable organizations in the United States.
#