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IRA Roll-Over Extended

MSK Client Alert
October 2008

The financial bailout legislation signed by the President on October 3, 2008 included an extension of the charitable IRA rollover that expired at the end of 2007. Unfortunately, the rollover provisions have not been made permanent, but only extended for two more years, retroactive from the beginning of 2008 to the end of 2009.

The original charitable IRA rollover was part of the Pension Protection Act of 2006. The new legislation makes no changes in the original configuration of the charitable IRA rollover. The rollover allows a donor to direct the custodian of his or her IRA to make a distribution from the IRA directly to charity, without the distributed funds being included in the donor’s gross income. This is highly advantageous for many donors since the income tax deduction for charitable deductions is limited to a percentage of adjusted gross income, and even those limited deductions are phased out as a donor’s AGI increases. Important points to remember include: 

For further information see the Charitable IRA Rollover Resource Center at

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