WASHINGTON, D.C., Feb. 5, 2021 —Legislation introduced in the U.S. Senate today would encourage tax-free charitable contributions at a time when charities nationwide are struggling under the economic fallout of the COVID-19 pandemic.
The Legacy IRA Act would expand the IRA Charitable Rollover to allow seniors starting at age 65 to make tax-free IRA rollovers to charities through life-income plans (charitable gift annuities or charitable remainder trusts). The American Heart Association, the world’s leading nonprofit organization focused on heart and brain health for all, has long advocated for passage of this important legislation.
The existing IRA Charitable Rollover, first created by Congress in 2006, allows individuals to make direct tax-free charitable gifts of up to $100,000 annually from their traditional IRA starting at age 70 ½. The Legacy IRA Act, sponsored by Sens. Kevin Cramer (R-N.D.) and Debbie Stabenow (D-MI), would expand the IRA Charitable Rollover by enabling seniors age 65 and over to give up to $400,000 annually tax free to an annuity held by the charity of their choice.
This version of the Legacy IRA Act varies from the version introduced in the 116th Congress by making this change to the IRA Charitable Rollover permanent.
Suzie Upton, Chief Operating Officer for the American Heart Association issued the following statement about the bill:
“This legislation is a win-win, both for seniors who want to support philanthropic causes and for charitable organizations that benefit from individual philanthropy. By building on the IRA Charitable Rollover, which has generated millions of dollars in new or increased contributions to local and national charities, this bill would allow more seniors to benefit from the rollover and make tax-free charitable contributions.
“The legislation would encourage charitable giving to mission-driven organizations nationwide, enabling seniors to participate in the rich American tradition of philanthropy while continuing to draw needed income from their investments. With organizations like the American Heart Association struggling financially because of the COVID-19 pandemic, this legislation is needed now more than ever. We are grateful to Senator Cramer and Senator Stabenow for their ongoing leadership on behalf of the nationwide philanthropic community, and we urge broad congressional support for this important bill.”
About the American Heart Association
The American Heart Association is a leading force for a world of longer, healthier lives. With nearly a century of lifesaving work, the Dallas-based association is dedicated to ensuring equitable health for all. We are a trustworthy source empowering people to improve their heart health, brain health and well-being. We collaborate with numerous organizations and millions of volunteers to fund innovative research, advocate for stronger public health policies and share lifesaving resources and information. Connect with us on heart.org, Facebook, Twitter or by calling 1-800-AHA-USA1.