IRA charitable rollover ban on donor-advised funds would end under HR 2891
In committeeH.R. 2891Latest action
Sponsor: Adrian Smith · Representative · NE
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Official title: IRA Charitable Rollover Facilitation and Enhancement Act of 2025
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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HR 2891 lets Americans 70½+ roll up to $105,000 yearly from IRAs into donor-advised funds tax-free, reversing a current exclusion.
50-second read · 4 questions answered below
What does this do?
HR 2891 removes a restriction that blocks people from using the qualified charitable distribution tax benefit when donating IRA funds to a donor-advised fund. Currently, Americans age 70½ or older can transfer up to $105,000 per year directly from an IRA to most charities without counting that money as taxable income, but donor-advised funds are excluded from that option. This bill would extend the existing benefit to cover donor-advised funds.
Who does it affect?
The change would most directly affect Americans age 70½ and older who hold traditional IRAs and wish to give to charity through a donor-advised fund. Financial institutions and nonprofits that manage donor-advised funds, such as community foundations and large financial firms with charitable arms, would also be affected.
Why does it matter?
Donor-advised fund sponsors could receive more contributions through the IRA rollover channel, expanding the flow of charitable dollars into those accounts. People who do not have IRAs, are under age 70½, or do not use donor-advised funds would not be directly affected by this change.
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Where does it stand?
- IntroducedApr 10, 2025
- House committeeYou are here · Apr 10, 2025
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the House Committee on Ways and Means.