More Tax Reform Coming?

The House Ways and Means Committee and the White House are trumpeting a follow-up bill to the Tax Cuts and Jobs Act.

The bill may be introduced this month and would make the sunset provisions of the Tax Reform law permanent and include changes in current retirement law provisions.

The Legacy IRA Act (H.R. 1337)—allowing tax-free transfers from IRAs to fund life-income charitable gifts—could be included in this new bill.

Current law allows taxpayers age 70-1/2 or older to make tax-free transfers from their IRAs to make direct gifts to charitable organizations. The Legacy IRA Act would permit taxpayers 65 or older to make transfers from their IRAs to fund life-income plans (charitable remainder trusts and charitable gift annuities) and enable them to retain retirement income, with a gift of the assets to the designated charity on death.

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.


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