July 30, 2012 – It is being reported that Congress, at an impasse over extension of the so-called Bush-era tax cuts, may consider extending a group of expired or expiring tax provisions, possibly including a provision that would affect some IRA owners.
Action could take place as early as this week or in September after lawmakers return from a five-week recess that begins August 3, 2012. It is not yet clear what provisions would be included if an extenders package is taken up, but earlier proposals have included extending the popular IRA qualified charitable distribution option. This allows taxpayers age 70½ and older to distribute and donate up to $100,000 per year tax-free to qualified charitable organizations. The distribution is also counted in satisfying a taxpayer's required minimum distribution requirement. The option expired December 31, 2011, but many have expected it to be extended.
Watch this Ascensus Latest News website for further developments.