WASHINGTON, D.C., October 27, 2020 — House Ways and Means Committee Chairman Richard Neal and Ranking Member Kevin Brady today introduced the Securing a Strong Retirement Act of 2020. Included in this bipartisan legislation is a version of the Legacy IRA Act, which would expand the IRA Charitable Rollover. The American Heart Association, the nation’s oldest and largest voluntary organization dedicated to fighting heart disease and stroke, has played a leadership role in urging lawmakers to adopt this change. For over two years, the American Heart Association has led a coalition of over 40 national charities advocating for this retirement change to increase charitable giving.
The version of the Legacy IRA Act included in today’s comprehensive retirement proposal would encourage middle-income seniors, starting at age 70 ½, to make tax-free IRA rollovers to charities through life-income plans (charitable gift annuities or charitable remainder trusts) up to $130,000 per year. Distributions from the charitable annuity to the donor would be taxed, just as distributions from a traditional IRA. This change to the law would allow seniors to fulfill their IRA-required minimum distribution, instead of paying income tax on their IRA payout.
The Securing a Strong Retirement Act would also make an important change to allow seniors to contribute to charities from other qualified retirement plans, such as 401(k)s - not just IRAs.
American Heart Association CEO Nancy Brown issued the following statement about the bill released today:
“The Legacy IRA Act would provide valuable benefits for both seniors who want to support philanthropic causes, and charitable organizations that benefit from individual philanthropy. This modified version of the original Legacy IRA Act, which was introduced last year, would provide much-needed support for charitable organizations like ours.
“By building on and expanding the existing IRA Charitable Rollover, which was first created by Congress in 2006 and made permanent in 2015, this bill would make a huge difference for non-profit organizations that have been negatively impacted by the COVID-19 pandemic. To date, the IRA Charitable Rollover has generated millions of dollars in new or increased contributions to local and national charities, and passage of this bill would increase these amounts substantially, while still providing retirement income to seniors.
“For mission-driven organizations nationwide struggling financially during the COVID-19 pandemic, the Legacy IRA Act would incentivize charitable giving, enabling seniors to participate in the uniquely American tradition of philanthropy while continuing to draw needed income from their retirement investments. We are grateful to Chairman Richard Neal (D-MA) and Ranking Member Kevin Brady (R-TX) for including the act in their bipartisan retirement package, and to Reps. Don Beyer (D-VA) and Mike Kelly (R-PA) for their early and strong leadership on the Legacy IRA Act on behalf of the nationwide charitable community.”
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.
For media inquiries please contact:
Suniti Sarah Bal – 916-390-1860; email@example.com