The U.S. Senate is currently considering the American Workers, State and Business Relief Act of 2010 (H.R. 4213), a bill that includes a one-year retroactive extension of the IRA charitable rollover. Senate Democratic leaders hope to proceed to a vote on the bill by June 18.

Prior to its expiration on Dec. 31, 2009, the IRA charitable rollover allowed taxpayers age 70 ½ or older to direct up to $100,000 annually from their individual retirement accounts to eligible charities, including colleges, universities and independent schools, without having to count the distribution as income for tax purposes. If enacted, H.R. 4213 would retroactively extend the IRA charitable rollover for one year-from Jan. 1 to Dec. 31, 2010.

The overall cost of H.R. 4213, combined with the fact that a significant portion of the bill is not revenue-neutral, is making it difficult for Democratic leaders to secure the votes needed in the Senate. Though the IRA charitable rollover extension would be paid for, the bill also includes an extension of unemployment and health benefits and a provision to prevent a significant cut in doctors' reimbursement rates under Medicare that are not offset.

On June 16, an attempt in the Senate to proceed to a final vote on the bill failed to get the necessary 60 votes. In response, Senate Democratic leaders have scaled back some of the bill's high cost provisions in the hopes of securing passage of H.R. 4213 by June 18.

Though the House already passed H.R. 4213 on May 28, Senate amendments to the bill would mean that the House would have to vote once again on the bill if it passes the Senate. It is unclear if the House would accept the Senate changes.

CASE strongly supports the IRA charitable rollover and will continue to urge lawmakers to pass a retroactive extension of the incentive as soon as possible.

Updated June 17, 2010