House Committee Passes Tax Extenders Bill; Expiring Tax Provisions Extended

May 30, 2008

The House Ways and Means Committee recently passed H.R. 6049, the Energy and Tax Extenders Act of 2008, which includes a one-year extension of the charitable contribution IRA rollover, approximately 30 other tax extenders, and a number of renewable energy provisions. The bill is expected to be approved by the full House in the coming weeks.

Among the expiring tax provisions that would be extended by the bill are two retirement provisions. First, the bill would extend through 2008 a special rule that allows active-duty reservists to make penalty-free withdrawals from retirement plans and subsequent re-contributions to IRAs.

Second, the legislation would extend a provision permitting tax-free charitable contributions from IRAs of up to $100,000 per year – for one year.

Although leaders of the Senate Finance Committee introduced companion legislation in April, Senate action is still unclear. However, approval of the bill is expected later this year in both the House and Senate.