[Congressional Record Volume 145, Number 48 (Thursday, March 25, 1999)]
[Extensions of Remarks]
[Page E576]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                        IRA CHARITABLE ROLLOVERS

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                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                        Thursday, March 25, 1999

  Mr. NEAL of Massachusetts. Mr. Speaker, today my colleague from 
Illinois, Representative Phil Crane, and I are introducing the IRA 
Charitable Rollover Incentive Act of 1999.
  Our legislation would allow individuals who have reached age 59\1/2\ 
to donate the assets of their individual retirement account to charity 
without incurring income tax liability.
  I am sure that over the past few years many of our colleagues have 
heard from charities in their district that the charity was approached 
by an individual who had accumulated a large IRA and wished to make a 
charitable donation. However, they are effectively precluded from doing 
so by the unique tax laws that apply to IRAs. We intend to change this.
  Our legislation would allow an individual to donate his or her IRA to 
charity without incurring any income tax consequences. The IRA would be 
donated to the charity without ever taking it into income so there is 
no tax consequence. Similarly, because current law IRAs represent 
previously untaxed income, there would be no charitable deduction for 
the donation. IRA rollovers to qualifying charitable deferred gifts 
would receive similar treatment.
  Mr. Speaker, this change in tax law could provide a valuable new 
source of philanthropy for our nation's charities. I would hope that my 
colleagues will join Mr. Crane and myself in sponsoring this innovative 
new approach to charitable giving.

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