- June 2010
- Congress Tries Again to Extend IRA Tax Incentive, Ease Pension Rules
- House Approves Quick Tax Breaks for Chile Donations
- Financial Overhaul Measure Being Considered by the Senate
- Senators Call On Boys & Girls Clubs to Justify Pay and Spending
- Muslim Groups Urge Obama to Ease Giving Restrictions
- Senator Questions Colleges’ Use of Tax-Exempt Bonds and Foundation Tax Proposal
- Proposed Donor Disclosure Requirements Concern Nonprofits
- US Government Awards Millions for AmeriCorps Expansion
- Legislation Introduced in House to Improve Federal Policy Toward Charities
- Supreme Court Upholds Law Prohibiting Aid to Terrorist Groups
- Boston to Seek Bigger Payments from Nonprofit Groups
- IL Supreme Court Rules Against Nonprofit Hospital in Property Tax Case
- CA Lawsuit Could Impact Health Care Fund Raisers
- Equity Firm Buys Mass. Catholic Hospital Chain
- OK Attorney General Opens Formal Investigation of Charity
- Corruption Alleged at NY Theatre Group
- NJ Aims to Limit State Pay for Nonprofit CEO’s
- Two MA Hospital’s Senior Executives Face Legal Scrutiny
- Nonprofit Suing State for Violating Freedom of Speech
- Strapped MA Towns Tax Catholic Properties
- GA Charity Challenges Tax Penalty for Fund-Raising
- IRS Notes Abuse of Charitable Deductions Tax Schemes
- IRS Continues Its Focus on Non Profit Governance Matters
- IRS Allows Small Charities a Reprieve from Tax-Filing Deadline
- IRS Concerned with Colleges’ Salaries and Income Reporting
- Postal Service Seeks to Reduce Delivery and Increase Rates in 2011
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Congress Tries Again to Extend IRA Tax Incentive, Ease Pension Rules
Congressional leaders have unveiled new legislation to extend through 2010 a tax break to encourage older people to donate money from their individual retirement accounts to charity. The measure allows people age 70-1/2 and older to give up to $100,000 a year from their IRAs without having to pay taxes on the distribution. The provisions are included in the American Jobs and Closing Tax Loopholes Act (HR 4213), a bill approved by the House, that would also extend unemployment insurance and health benefits, small-business loan programs, aid to states, and a variety of tax cuts.
Both the Senate and the House of Representatives already voted separately to extend the IRA tax break, which expired at the end of 2009, but the two bodies have been wrangling over how to merge the two bills and how to pay for the legislation.
This legislation would also ease rules governing contributions to defined-benefit pension plans, a move that would offer relief to charities whose plans have suffered investment losses during the economic downturn. Current rules require employers that operate defined-benefit pension plans—which provide specific amounts of money to retired employees—to repay within seven years losses suffered by the plans during the 2008 stock-market crash.
Non profit leaders have been pushing for pension relief, arguing that otherwise charities would be forced to divert money away from their programs at a time of growing need.