Pomeroy, Herger Urge Colleagues to Sponsor Public Good IRA Rollover Act

In the coming weeks, we will introduce the "Public Good IRA Rollover Act." Our bill would encourage greater donations to charities by allowing Americans to make contributions tax-free from their Individual Retirement Accounts (IRAs). We ask you to support this legislation that would enrich lives in our communities by providing much-needed resources to charities.

Over the last thirty years, IRAs have encouraged American workers to save for retirement. For many, their savings have grown substantially and today they may find themselves with more assets in their IRAs than they need to meet their retirement goals. In August, a limited IRA Charitable Rollover was signed into law. Americans are a generous people and early reports attest to the increased willingness to donate to charities with funds from IRAs. In fact, this incentive has encouraged thousands of Americans over age 70 1/2 to donate funds from IRAs to charitable organizations. Since passage into law, taxpayers donated more than $50 million through the IRA Charitable Rollover. Unfortunately, this ability will expire at the end of 2007.

The Public Good IRA Rollover Act would continue to clear away complications for retirees who would otherwise have to pay taxes on IRA withdrawals and then claim a tax deduction for their donation. Older Americans, who do not itemize their tax deductions, would not lose the tax benefit provided by IRA Charitable Rollover because our bill would make it permanent. Furthermore, we would expand the incentive for donating to charities by permitting IRA owners starting at age 59 1/2 to use IRA funds to support charities without having to pay taxes. The bill would also allow Americans to contribute more money to a broader range of charities.

The "Public Good IRA Rollover Act" is a simple piece of legislation that gives older Americans a straightforward way to give something back to society while providing much needed funding for churches, hospitals, museums, schools, and social service organizations in our communities. We invite you to join us as cosponsors of this bill. Please have your staff call Diane Oakley (Pomeroy) at 5-2611 or Dan MacLean (Herger) at 5-3076 to add your name as a cosponsor.