People who took payouts from individual retirement accounts last year will not be able to put them back in to take advantage of Congress’s last-minute extension of a tax break for charitable donations from the accounts, reports The Wall Street Journal.
The tax package approved by Congress last month retroactively restored a popular provision that had expired at the start of 2010, allowing those aged 70½ and older to give up to $100,000 a year from their retirement account directly to charity. The donations satisfy the required minimum distribution from the accounts but do not count as income so are not taxed.
Lawmakers made the extension of the tax break retroactive and gave taxpayers until January 31 to make such donations and have them count for the 2010 tax year. But the IRS said Wednesday that the legislation contains no provision for those who have already taken the distribution to return it to their retirement account and give it to charity.