March 21, 2010 | Read Time: 1 minute
The Senate has passed legislation that would extend through 2010 a tax break to encourage older people to donate money from their individual retirement accounts to charity. The measure would allow people age 70 12 and older to give up to $100,000 a year from their IRA’s without paying taxes on the money.
The provision is part of a bill, HR 4213, that would also extend tax breaks to encourage businesses to donate property, food, and books to public schools and computer equipment for educational purposes. The measures expired at the end of 2009.
The bill would also ease rules governing employer contributions to defined-benefit pension plans, a move that would offer relief to charities whose plans have suffered investment losses during the economic downturn.
Current rules require employers that operate defined-benefit pensions plans—which provide specific amounts of money to retired employees—to repay within seven years losses suffered by the plans during the 2008 stock-market crash. The Senate bill would allow them to stretch out the payments for either nine or 15 years, with different requirements for each option.
