FOR IMMEDIATE RELEASE
January 23, 2003
CONTACT: Kevin Schweers
SENATOR HUTCHISON INTRODUCES CHARITABLE IRA ROLLOVER BILL
Legislation Would Encourage Charitable Giving
WASHINGTON, DC -- U.S. Senator Kay Bailey Hutchison (R-TX) today re-introduced bipartisan legislation to allow donors to roll over assets from an Individual Retirement Account, or IRA, to a charity without incurring a tax liability.
"Charitable giving shouldn't be taxable event. Unfortunately, that's exactly what happens under current law if a donation comes from an IRA," Senator Hutchison said. "This bill will encourage a valuable new source of American philanthropy."
"One of my priorities has been to promote charitable giving and expand the role charities and faith-based institutions play in addressing social problems in the United States," Senator Hutchison said. "This bill will make it easier for Americans to help those in need."
The legislation, co-sponsored by Senators Richard Durbin (D-IL) and Carl Levin (D-MI), allows individuals age 59 1/2 or older 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 assets from their IRA, pay the taxes due, and then contribute the funds to a charity.
"Following the tragic events of September 11, Americans once again demonstrated, their generous nature," Senator Hutchison said. "Within months, more than $2 billion dollars was collected to help the victims of the terror attacks. This bill will help Americans give even more generously and effectively, and respond to those in need not only with their hearts, but also with their pocketbooks. And they won't have to pay a penalty for doing so."
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