IRA Rollover Reinstated for LIMITED Time; FY15 Funding Update
December 17, 2014
IRA Charitable Rollover Returns—For a VERY Limited Time!
December 17, 2014, Washington, D.C. -- Congress has reinstated the IRA Charitable Rollover only for the remainder of 2014, after much debate and several attempts for longer or permanent reinstatement.
Just prior to adjourning for the year, the House voted on a provision that would make the IRA Rollover, and two other charitable giving incentives, permanent. While all three charitable provisions have broad bipartisan support, politics surrounding how to pay for the cost of the measure prompted a White House veto threat, and the bill was just eight votes short of winning the 2/3 majority needed for moving ahead.
The President will soon sign into law a package of short-term tax provisions that includes reinstating the IRA Charitable Rollover only through December 31, 2014. The IRA Charitable Rollover has proven to generate new and increased charitable donations for orchestras in the years it has been available. Unfortunately, the provision has undergone several cycles of expiring and being renewed, leaving many donors confused about the status. Here are the facts:
The IRA Rollover expired at the end of 2013, and is now retroactively reinstated for 2014. If donors aged 70 ½ and older instructed or instruct their IRA administrators to make a distribution of up to $100,000 directly to a charity through December 31, 2014, that distribution will not be treated as taxable income for 2014.
It is always wise to advise donors to contact their IRA administrator and/or tax advisors for more detail as you inform them about the changing status of this important charitable giving incentive.
The IRA Charitable Rollover will expire again at the end of this month, which means this provision is NOT yet available for 2015. The League, in partnership with you, will continue to advocate to Congress for the IRA Rollover to be made permanent when the new Congress convenes next year.
NEA, Arts Education Steady in Final FY15 Spending Deal
Congress settled on a massive FY15 spending package before adjourning for the year. In a $1.1 trillion deal that included gains and losses for a number of federal spending accounts, funding for the National Endowment for the Arts (NEA) and Arts in Education at the U.S. Department of Education (ED) held steady. The bill also included a number of policy provisions, including one related to multiemployer pension plans.
- NEA: Funding for the NEA will remain at the current level of $146 million through the end of FY15, September 30, 2014. The NEA has already announced the first batch of grants for FY15, and grant guidelines for FY16 are expected to be released at the end of this month.
- Arts in Education: Funding of $25 million for the competitive grant programs at the ED will allow multi-year national model projects that improve teaching and learning in the arts to continue.
- Pension Reforms: Negotiators on the Hill added a package of reforms related to multiemployer pension plans, responding to calls for reform from the American Federation of Musicians and a wide array of other groups that operate multiemployer plans. The provisions allow trustees of severely underfunded plans to elect to adjust vested benefits for certain retirees and authorizes an increase in the premiums that plans pay to the Pension Guarantee Benefit Corporation (PBGC).