Nonprofit Groups Push for Extension of IRA Charity Tax Break

Philanthropic groups are seeking an extension of a tax break, due to expire at the end of the year, that allows older donors to make gifts from individual retirement accounts tax-free, The Wall Street Journal reports.

Withdrawals from the accounts, commonly known as IRA’s, are generally subject to taxation, but a provision enacted by Congress in 2006 allows people at least 70 and a half years old to channel funds to charity without paying taxes, a move that would result in a decline of $50-million in taxes but that would generate an estimated $140-million in donations.