Serving the Philanthropic Community Since 1927

Suggested Maximum Gift Annuity Rates, Quality Training Opportunities, and Consumer Protection Advocacy

fb li tw

 

Take Action Today – Legacy IRA Rollover Legislation (H.R. 1337)

CallToAction2webUrge Your House Member of Congress to include the Legacy IRA Act (H.R. 1337)—allowing tax-free transfers from IRAs to fund life-income charitable gifts— in a follow-up bill to the Tax Cuts and Jobs Act (now being considered).

The Legacy IRA Act—What Is It?

  • We have learned the House plans to introduce a follow-up bill to the Tax Cuts and Jobs Act which would include changes in current retirement provisions.
  • The bill permits tax-free distributions, up to $400,000, from IRAs to a split-interest entity until December 31, 2021. Split-interest entities include charitable gift annuities, charitable remainder trusts, and charitable annuity trusts. This is an excellent opportunity for taxpayers 65 and over who depend on their retirement assets but also wish to make a significant charitable impact.

ACTION –  How YOU Can Help

  • Call and/or email your House Member, to urge Ways & Means Chairman Kevin Brady to include the Legacy IRA Act (H.R. 1337) in the retirement provisions of Tax Law 2.0 (now being considered).
  • Enlist additional House co-sponsors of the Legacy IRA Act.
  • Seek to have a companion bill to the Legacy IRA Act introduced in the Senate by members of the Senate Finance Committee. 
  • Ask Senate Finance Committee members John Thune (R-SD) and Ron Wyden (D-OR) to include the Legacy IRA Act in their Charity Act (S. 1343). 
  • The most effective communications are from constituents in the House member’s district. You can find your House Member's contact information by entering your zip code here.

Talking Points:

  • The Legacy IRA Act would expand current law, allowing direct distributions to a charity from IRAs to fund life income gifts including CGAs, CRTs, and CRATs.
  • The Legacy IRA Act would allow middle-class taxpayers (both nonitemizers and itemizers) to participate more fully in philanthropy through life-income gifts.
  • The Legacy IRA Act is a fiscally prudent and cost-efficient expansion that would encourage generosity and help offset the loss of the charitable deduction for those who will no longer itemize resulting from the increased standard deduction. Retirement income from life-income plans is fully taxed.
  • Benefits to charitable organizations.

The most effective communications are from constituents in the House member’s district.

  • You can find your House Member's contact information by entering your zip code here.
  • Telephone the Congressperson’s office and leave a message.
  • Also, send an email.
  • For security reasons, letters can take a few weeks to arrive at a Congressperson’s office.